Touchstone Exploration Inc (TXP)

Canadian Investment Regulatory Organization Trade Resumption - TXPJune 5, 2026 8:23 AM
PR Newswire (Canada) TORONTO, June 5, 2026 /CNW/ - Trading resumes in:Company: Touchstone Exploration Inc.TSX Symbol: TXPAll Issues: YesResumption (ET): 8:00 AMCIRO can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. CIRO is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada..SOURCE Canadian Investment Regulatory Organization (CIRO) – Halts/Resumptions Original: Canadian Investment Regulatory Organization Trade Resumption - TXP

L'Organisme canadien de réglementation des investissements permet la reprise de la négociation - TXPJune 5, 2026 8:28 AM
PR Newswire (Canada) TORONTO, le 5 juin 2026 /CNW/ - Reprise des négociations pour :Société : Touchstone Exploration Inc.Symbole TSX : TXPLes titres : OuiReprise : 08 h 00L'OCRI peut prendre la décision de suspendre (ou d'arrêter) temporairement les opérations à l'égard d'un titre d'une société cotée en bourse. Les arrêts des opérations sont mis en oeuvre afin d'assurer le bon fonctionnement d'un marché équitable. L'OCRI est l'organisme d'autoréglementation national qui surveille l'ensemble des courtiers en placement et l'ensemble des opérations effectuées sur les marchés des titres de capitaux propres et les marchés des titres de créance au Canada.SOURCE L’Organisme canadien de règlementation des investissements (OCRI) - Arrêts/Reprises Original: L'Organisme canadien de réglementation des investissements permet la reprise de la négociation - TXP

Touchstone Exploration INC. Initial Results Of FundraiseJune 5, 2026 2:00 AM
ACCESS NewswireTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE RESTRICTED AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW COMMON SHARES OF TOUCHSTONE EXPLORATION INC. IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED ("MAR"). IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN ‎THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH ‎INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE ‎INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL ‎THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.‎CALGARY, AB / ACCESS Newswire / June 5, 2026 / Touchstone Exploration Inc. ("Touchstone" or the "Company") (TSX:TXP)(LSE:TXP) is pleased to announce that, further to the Company's announcement dated June 4, 2026 regarding the Fundraise (the "Fundraise Announcement"), the Company has initially raised aggregate gross proceeds (before expenses) of US$10.9 million (approximately £8.1 million and C$15.0 million) at the Issue Price of 7 pence per New Common Share (equivalent to approximately C$0.13 per New Common Share).Of the aggregate gross proceeds raised to date, approximately US$10.3 million (approximately £7.7 million and C$14.3 million) is being subscribed for by the Company's largest shareholder, Purebond Limited ("Purebond"), by way of the aggregate of the First Tranche Subscription Shares and the Debt Securities (each as defined in the Fundraise Announcement, which also provides further details of the Subscription Agreement).The WRAP Offer remains open for participation and a further announcement will be made upon its closing confirming, inter alia, the final aggregate number of New Common Shares to be issued, allocations to Purebond, and related party transaction disclosures.Canaccord Genuity Limited acted as Nominated Adviser and Lead Bookrunner and Cavendish Capital Markets Limited acted as a Joint Bookrunner in connection with the Placing. Canaccord Genuity Corp. acted as Canadian Adviser in respect of the LIFE Offering.Admission and Total Voting RightsApplication will be made to AIM for the First Tranche Subscription Shares, the Placing Shares, and the LIFE Offering Shares to be admitted to trading on AIM ("First Admission") and the TSX to list the New Common Shares. First Admission is expected to occur on or around June 10, 2026.The LIFE Offering Shares will be immediately freely tradable in Canada pursuant to the Listed Issuer Financing Exemption.A further announcement will be made following the close of the WRAP Offer, which will include the total voting rights in the Company's share capital at First Admission, pursuant to the admission of the First Tranche Subscription Shares, the Placing Shares, the LIFE Offering Shares and the WRAP Offer Shares.Capitalised terms used in this announcement but not defined have the meanings given to them in the Fundraise Announcement.Touchstone Exploration Inc.Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:Touchstone Exploration Inc.
Paul R. Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487
Scott Budau, Chief Financial Officer
Brian Hollingshead, EVP Engineering and Business DevelopmentCanaccord Genuity (Nominated Advisor and Joint Broker)
Adam James / Charlie Hammond Tel: +44 (0) 207 523 8000
Sam Lucas / Darren FurbyCavendish Capital Markets Limited (Joint Broker)
Neil McDonald / Derrick Lee / Graham Hall Tel: +44 (0) 131 220 6939FTI Consulting (Financial PR)
Nick Hennis / Ben Brewerton Tel: +44 (0) 203 727 1000
Email: touchstone@fticonsulting.comAdvisoriesCertain information contained in this announcement would have been deemed inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time, until the release of this announcement.Exchange RatesFor reference purposes in this announcement, one British pound has been converted into United States dollars at a rate of 1.00 to US$1.3426 and Canadian dollars at a rate of 1.00 to C$1.8640 as set out in the Fundraise Announcement.Forward-looking StatementsThe information provided in this announcement contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations, and objectives for future operations that are subject to assumptions, risks, and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this announcement speak only as of the date hereof and are expressly qualified by this cautionary statement.Specifically, this announcement includes, but is not limited to, forward-looking statements relating to: the UK Placing, the WRAP Offer, the Canadian LIFE Offering and the Subscription, including the size, pricing and timing thereof, the type of securities being offered thereunder (including any Debt Securities), the investors participating therein, the intended use of proceeds therefrom (including with respect to future exploration, development and production activities and the locations thereof), the conditions and approvals required and applications being filed in connection therewith; the Company's business plans, strategies, priorities and development plans; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund current obligations and future capital expenditures. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2025 Annual Information Form dated March 30, 2026 which is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com).The forward-looking statements contained in this announcement are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statementsmade herein or otherwise, whether as a result of new information, future events or otherwise.Important Notice to InvestorsNo prospectus or admission document has been or will be filed, published, or made available in connection with the matters described in this announcement.Members of the public are not eligible to take part in the Placing. In any EEA Member State, this announcement is only addressed to and directed at persons in such member states who are qualified investors within the meaning of Article 2(e) of the Prospectus Regulation (EU) 2017/1129 (as amended) (the "EU Prospectus Regulation") including any implementing measure in any member state ("Qualified Investors"). In addition, in the United Kingdom, this announcement is addressed and directed only at persons who are qualified investors within the meaning of paragraph 15 of Schedule 1 of the Public Offers and Admissions to Trading Regulations 2024 ("POATR") and who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) are persons who are high net worth entities falling within Article 49(2)(a) to (d) of the Order, and (iii) to persons to whom it may otherwise be lawful to communicate it to (all such persons being referred to as "Relevant Persons"). Any investment or investment activity to which this announcement relates is available only to Relevant Persons and will be engaged in only with such persons. Other persons should not rely or act upon this announcement or any of its contents. This announcement must not be acted on or relied on by persons who are not Relevant Persons. Persons distributing this announcement must satisfy themselves that it is lawful to do so. Any investment or investment activity to which this announcement relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This announcement does not itself constitute an offer for sale or subscription of any securities in the Company.All offers of the Placing Shares in the EEA and the United Kingdom will be made pursuant to an exemption under the EU Prospectus Regulation and POATR (respectively) from the requirement to produce a prospectus. In the United Kingdom, this announcement is being directed solely at persons in circumstances in which section 21(1) of the Financial Services and Markets Act 2000 (as amended) ("FSMA") does not require the approval of the announcement by an authorised person.Neither this announcement nor any copy of it may be taken or transmitted, published or distributed, directly or indirectly, in whole or in part, in, into or from the United States of America (including its territories and possessions, any state of the United States of America (the "United States" or the "US")), Australia, Japan or the Republic of South Africa or transmitted, distributed to, or sent by, any national or resident or citizen of any such countries or any other jurisdiction where to do so would constitute a violation of the relevant securities laws of such jurisdiction (each a "Restricted Jurisdiction"). Any failure to comply with this restriction may constitute a violation of United States, Australian, Japanese, or South African securities laws.This announcement does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or other securities in any Restricted Jurisdiction or in Canada. The Fundraise and the distribution of this announcement and other information in connection with the Fundraise and Admission in certain jurisdictions may be restricted by law and persons into whose possession this announcement and any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.The Offer Shares are not being offered or sold in Canada, and no securities commission or similar authority in any jurisdiction of Canada has in any way reviewed or passed upon the merits of the Offer Shares or reviewed this announcement, and any representation to the contrary is an offence. The Company is relying on an exemption from the requirements under the Securities Act (Alberta) to provide prospective purchasers of the Offer Shares with a prospectus and, as a consequence of purchasing the Offer Shares pursuant to such exemption, certain protections, rights and remedies provided by the Securities Act (Alberta), including statutory rights of rescission or damages will not be available to it.The Offer Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or under the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. The Offer Shares have not been and will not be approved or disapproved by the United States Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the Fundraise or the accuracy or adequacy of this announcement. Any representation to the contrary is a criminal offence in the United States.The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may or should be placed for any purposes whatsoever on the information contained in this announcement or its accuracy, completeness, or fairness. The information in this announcement is subject to change. However, the Company does not undertake to provide the recipient of this announcement with any additional information, or to update this announcement or to correct any inaccuracies, and the distribution of this announcement shall not be deemed to be any form of commitment on the part of the Company to proceed with the Placing or the WRAP Offer or any transaction or arrangement referred to in this announcement.For the purposes of UK MAR and Article 2 of the binding technical standards published by the Financial Conduct Authority in relation to MAR as regards Commission Implementing Regulation (EU) 2016/1055, the person responsible for the release of this announcement is Paul Baay (President and Chief Executive Officer).Canaccord Genuity Limited ("Canaccord") which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as Nominated Adviser and Lead Bookrunner for Touchstone and for no-one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Touchstone for providing the protections afforded to clients of Canaccord, or for providing advice in relation to any matter referred to herein.Cavendish Capital Markets Limited ("Cavendish") which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as a Joint Bookrunner for Touchstone and for no-one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Touchstone for providing the protections afforded to clients of Cavendish, or for providing advice in relation to any matter referred to herein.No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by either Canaccord or Cavendish or by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefor is expressly disclaimed.Neither Canaccord nor Cavendish, nor any of their subsidiaries or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Canaccord or Cavendish (as the case may be) in connection with this announcement, any statement contained herein or otherwise.No statement in this announcement is intended to be a profit forecast or estimate, and no statement in this announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser.The Offer Shares to be issued pursuant to the Fundraise will not be admitted to trading on any stock exchange other than on AIM and the TSX.Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this announcement.SOURCE: Touchstone Exploration, Inc.View the original press release on ACCESS NewswireOriginal: Touchstone Exploration INC. Initial Results Of Fundraise

Touchstone Exploration Inc. Proposed Fundraise of US$10 Million to US$15 MillionJune 4, 2026 12:25 PM
ACCESS NewswireTHIS ANNOUNCEMENT (INCLUDING THE APPENDICES) AND THE INFORMATION CONTAINED HEREIN ARE RESTRICTED AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW COMMON SHARES OF TOUCHSTONE EXPLORATION INC. IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED ("MAR"). IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.CALGARY, AB / ACCESS Newswire / June 4, 2026 / Touchstone Exploration Inc. ("Touchstone" or the "Company") (TSX:TXP)(LSE:TXP) announces the launch of an integrated financing to raise gross proceeds of between US$10 million and US$15 million (between approximately £7.4 million / C$13.9 million and £11.2 million / C$20.8 million), of which US$10 million is expected to be provided by Touchstone's largest existing shareholder, Purebond Limited (the "Fundraise").The Fundraise will be conducted via the issue of new common shares of no par value in the capital of the Company ("Common Shares") at a price of 7 pence (equivalent to approximately C$0.13) each (the "Issue Price") and consists of:an aggregate investment of up to US$10 million by Purebond Limited ("Purebond"), comprising (i) a direct subscription (the "Subscription") by Purebond for new Common Shares (the "Subscription Shares") at the Issue Price pursuant to the subscription agreement entered into with the Company dated June 4, 2026 (the "Subscription Agreement"), subject to clawback to satisfy valid applications pursuant to the Placing and the LIFE Offering (both as defined below) and (ii) pursuant to the Subscription Agreement and the related repayment and subscription agreement between the Company and Purebond, unsecured non-convertible debt securities of the Company (a debenture) (the "Debt Securities") in connection with the Fundraise; such Debt Securities are not issued at the Issue Price;a non-pre-emptive placing (the "Placing") of new Common Shares (the "Placing Shares") at the Issue Price to certain institutional and other investors, to be carried out by way of an accelerated bookbuild;a non-pre-emptive private placement (the "LIFE Offering") of new Common Shares (the "LIFE Offering Shares") at the Issue Price to certain investors in Canada pursuant to the Listed Issuer Financing Exemption ("LIFE") (under applicable Canadian securities laws); anda non-pre-emptive retail offer through the Winterflood Retail Access Platform ("WRAP") (the "WRAP Offer") to raise gross proceeds of up to £0.74 million (US$1.0 million / C$1.4 million) through the issue of new Common Shares at the Issue Price (the "WRAP Offer Shares" and together with the Placing Shares, the LIFE Offering Shares and the Subscription Shares, the "Offer Shares") to be made on terms outlined in a separate announcement.The Issue Price represents a 3.4 percent discount to 7.25 pence, which was the closing price of the Common Shares on the AIM market ("AIM") of the London Stock Exchange on June 3, 2026.The Placing is to be conducted by way of an accelerated bookbuild process (the "Bookbuild") which will commence immediately following this Announcement and will be subject to the terms and conditions set out in Appendix 1 to this Announcement.Canaccord Genuity Limited ("Canaccord") is acting as Nominated Adviser and Lead Bookrunner and Cavendish Capital Markets Limited ("Cavendish") is acting as a Joint Bookrunner (together, the "Joint Bookrunners") in connection with the Placing.There is an offering document (the "Offering Document") related to the LIFE Offering in Canada that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.touchstoneexploration.com. Prospective investors in Canada should read the Offering Document before making an investment decision.Canaccord Genuity Corp, acting as Canadian Adviser, has been engaged to find subscribers for the LIFE Offering Shares on a "best efforts" basis.The Subscription Shares will be subscribed for on the terms of the Subscription Agreement, rather than pursuant to the terms and conditions of the Placing or the LIFE Offering.Trading of the Common Shares on the Toronto Stock Exchange ("TSX") was halted as of 11:36 a.m. (Toronto time) today at the request of the Company, pending the release of this Announcement. The trading halt will continue until 8:00 a.m. (Toronto time) on June 5, 2026, at which time trading of the Common Shares on the TSX is expected to continue in the normal course during trading hours.The Fundraise is expected to close (being the admission and settlement of the Placing Shares, the LIFE Offering Shares, the Retail Shares, the First Tranche Subscription Shares and the Debt Securities) concurrently on or about June 10, 2026.Background to the Fundraise and Intended Use of ProceedsThe net proceeds from the Fundraise are intended to accelerate the Company's 2026 development program and fortify its financial position. Specifically, capital will be deployed to:Execute high-impact drilling: Fund the next phase of development wells to drive near-term volume growth.Enhance existing assets: Perform low-cost, production-enhancing recompletions and workovers across the asset portfolio.Strengthen the balance sheet: Reduce aged trade payables and resolve historical working capital constraints.Operational Performance and Pricing DynamicsThe Company has continued to advance its operational and development activities during 2026. Average daily production for the quarter ended March 31, 2026 rose 8 percent year-over-year to 4,657 boe/d, with April 2026 sales volumes averaging 4,700 boe/d.A significant catalyst for revenue growth lies in the Company's transition to anticipated higher-margin Central block marketing contracts:Current realizations: March 2026 Central block LNG sales volumes achieved US$4.22/MMBtu (net of LNG fees) under the current Train 4 agreement.Near-term upside: All gross production exceeding 7.1 Bcf (approximately 4.6 Bcf net) for the October 2025 to September 2026 period is eligible for nomination to the Atlantic LNG Train 2/3 marketing contract.The arrangement utilizes pricing formulas that are more directly linked to international LNG pricing benchmarks and, based on pricing assumptions used in the Company's March 2026 forecasts, was estimated to generate net realizations of approximately US$11.75/MMBtu (net of LNG fees). Due to scheduled Train 4 and pipeline infrastructure maintenance periods running through July 19, 2026, the Company is currently redirecting and selling Central field production through this higher-yielding Train 2/3 contract and the domestic market.Future flexibility: The Train 4 agreement expires in May 2027, allowing the Company to transition all Central block production volumes to the Train 2/3 contract over the longer term.2026 Development PlanThe Company has achieved strong operational progress on its 2026 capital program, as the FR-1835 and FR-1836 development wells on the WD-8 block were successfully drilled, completed and placed on production in mid-May 2026.Key Upcoming Milestones:Second Quarter 2026: Commissioning of the Cascadura booster compressor is targeted for June to stabilize production and increase plant deliverability.Third Quarter 2026: Planned activities include drilling two development commitment wells on the WD-4 block(1), executing a targeted recompletion and workover program across the Central and Ortoire blocks, and spudding the Central block BR-2 well.Fourth Quarter 2026: Integration of the new WD-4 and BR-2 wells into the production stream and commencement of drilling the CR-4 development well(1) on the Central block.(1)Note that the drilling of the WD-4 and the CR-4 development wells are contingent on the Company raising in excess of US$10 million as disclosed below.Production PotentialSuccessful execution across the WD-4, Cascadura, and Central blocks provides for the potential for a meaningful increase in production volumes. Management estimates that average production could grow from approximately 4,700 boe/d to approximately 6,800 boe/d by March 2027. The majority of this incremental growth is expected to be driven from the Central block wells. These figures represent potential production levels based on successful development outcomes and remain subject to operational progress, final funding levels, and individual well productivity.Liquidity and Going Concern ConsiderationsA portion of the proceeds from the fundraise are expected to be used to strengthen liquidity and reduce working capital constraints identified in the going concern note included in the Company's March 31, 2026, unaudited interim condensed consolidated financial statements.Under Management's current assumptions, including the lower US$10 million funding scenario, this strategic use of capital is expected to mitigate the risk of year-end 2026 financial covenant breaches under its Trinidad-based loan agreement. Additionally, the Company has secured a formal waiver from its lender, eliminating the testing of the debt service coverage covenant for the 2026 financial year.Expected Use of ProceedsDescription of use of gross proceeds from the Fundraise (millions of US$)US$10 million caseUS$15 million case Well workovers (Cascadura and Central)1.11.1WD-4 block (Two minimum commitment wells)-2.7New drill - BR-2 (Central)4.04.0New drill - CR-4 (Central)-1.8Working capital and vendor payables8.410.1Less: forecasted funds flow from operations(3.5)(4.7)Total gross proceeds10.015.0Related Party ParticipationPurebond has entered into a Subscription Agreement with the Company as part of the Fundraise. This is deemed to be a transaction with a related party pursuant to Rule 13 of the AIM Rules for Companies by virtue of Purebond being a 15.4 percent shareholder of the Company. The Fundraise may also constitute a related party transaction for purposes of applicable Canadian securities laws, including Multilateral Instrument 61-101. Further details of the Purebond allocations and related party transaction details shall be provided upon close of the Fundraise.Shareholder ApprovalIt is expected that the Fundraise will be undertaken in two tranches. Under the first tranche (the "First Tranche"), the Company plans to issue such number of Common Shares as may be permitted to be issued without shareholder approval under applicable TSX requirements, and for those shares (the "First Tranche Shares") to be admitted to trading on the AIM market ("AIM") and the TSX in advance of the remaining Offer Shares to be issued to Purebond (as described below) (the "First Admission").As part of the First Tranche, pursuant to the Subscription Agreement, the Company will issue to Purebond a number of Subscription Shares (the "First Tranche Subscription Shares") such that, prior to obtaining shareholder approval at the General Meeting, Purebond's beneficial ownership of Common Shares does not exceed 19.99 percent of the Company's total issued share capital, and any remaining Purebond commitment that cannot be satisfied through the issuance of Common Shares within applicable equity issuance limitations (including any applicable TSX insider participation requirements) will be satisfied through the issuance of Debt Securities.Under the second tranche (the "Second Tranche"), subject to shareholder approval from independent shareholders at a general and special meeting of shareholders of the Company to be held on or about July, 23, 2026 (the "General Meeting") and other applicable approvals, the Company expects that any Debt Securities issued to Purebond in connection with the Fundraise will be repaid in full and such repayment amount redirected into a subscription for Common Shares one (1) Business Day following the General Meeting (provided shareholder approval is obtained), or otherwise as described in the repayment and subscription agreement between the Company and Purebond. If shareholder approval is not obtained, such subscription and repayment mechanics will not proceed, and the Debt Securities will remain outstanding. It is expected that such Common Shares (the "Second Tranche Shares") will be admitted to trading on AIM and the TSX on or about July 28, 2026 (the "Second Admission").It is important to note that the First Tranche Shares shall be issued on First Admission, which is expected to occur at 8:00 a.m. on June 10, 2026 (or such later date as the Company and the Joint Bookrunners may agree). If the approvals and other conditions required to repay in full the Debt Securities and redirect the repayment amount into Common Shares (or otherwise settle them) are not subsequently satisfied, the portion of Purebond's commitment not satisfied through the issuance of Common Shares in the First Tranche will remain in the form of the Debt Securities pending any further approvals.Details of the FundraiseUK PlacingThe Joint Bookrunners will be conducting an accelerated book building process, in respect of the Placing. The book will open with immediate effect. The Joint Bookrunners have entered into an agreement with Touchstone (the "Placing Agreement") under which, subject to the conditions set out therein, the Joint Bookrunners will agree to use their respective reasonable endeavours to procure subscribers for the Placing Shares at the Issue Price. The Placing is subject to the terms and conditions set out in Appendix 1 to this Announcement, including the completion of the Subscription and the LIFE Offering. Members of the public are not entitled to participate in the Placing.The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with Touchstone's existing issued Common Shares. The number of Placing Shares to be allotted and issued by the Company pursuant to the Placing will be determined at the close of the Bookbuild. It is envisaged that the Bookbuild will close no later than 7:00 p.m. (London Time) on June 4, 2026 but the timing of the closing of the Bookbuild and allocations are at the absolute discretion of the Joint Bookrunners and the Company. Details of the final number of Placing Shares and the Issue Price will be announced as soon as practicable after the closing of the Bookbuild. The Placing is not being underwritten. The Placing is conditional upon the completion of the Subscription and the LIFE Offering and the admission to trading and settlement of the First Tranche Subscription Shares and the LIFE Offering Shares. The Issue Price for UK Placees (as defined below) pursuant to the UK Placing has been translated at a fixed exchange rate of £1.00 to C$1.864 such that it will be the same price in pounds sterling equivalent as for placees participating in the LIFE Offering. In managing allocations among the Placing and the WRAP Offer, the Company intends to comply with applicable TSX requirements, including the TSX Company Manual s.607 limitation on the number of Common Shares that may be issued without shareholder approval in connection with the non-LIFE components of the Fundraise, with the LIFE Offering structured as a bona fide LIFE offering under the TSX Company Manual s.606.Canadian LIFE OfferingConcurrent with the Placing, the WRAP Offer and the Subscription, subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"), the LIFE Offering Shares that may be sold in Canada under the LIFE Offering will be offered for sale to purchasers in each of the provinces of Canada other than Quebec, pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935 - Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the "Listed Issuer Financing Exemption"). LIFE Offering Shares issued under the Listed Issuer Financing Exemption will not be subject to a hold period under Canadian securities legislation.Canaccord Genuity Corp, acting as Canadian Adviser, has been engaged to find subscribers for the LIFE Offering Shares on a "best efforts" basis.SubscriptionConcurrent with the Placing, the LIFE Offering and the WRAP Offer, the Company has entered into a Subscription Agreement with Purebond in accordance with which Purebond has irrevocably agreed to invest up to US$10,000,000 into the Company pursuant to:a subscription for a number of Common Shares equal to its pro rata portion of the Placing Shares, the WRAP Offer Shares and the LIFE Offering Shares (the "Basic Tranche 1 Subscription Shares") as part of the Offering (the "Basic Subscription");to the extent that the proceeds of: (i) the Basic Subscription; (ii) the Placing; (iii) the WRAP Offer; and (iv) the LIFE Offering would otherwise be less than US$10,000,000 (a "Basic Subscription Shortfall"), a subscription for such additional Common Shares (if any) (the "Additional Tranche 1 Subscription Shares" and, together with the Basic Tranche 1 Subscription Shares, the "Tranche 1 Subscription Shares") at the Issue Price which would give rise to proceeds equal to such Basic Subscription Shortfall (the "Additional Tranche 1 Subscription" and together with the Basic Subscription, the "Tranche 1 Subscription"), provided that, after giving effect to such Additional Tranche 1 Subscription, Purebond's beneficial ownership of Common Shares does not exceed 19.99 percent of the issued share capital of the Company prior to the General Meeting, and the issuance of such Common Shares complies with applicable TSX requirements (including any applicable insider participation requirements); andto the extent that the proceeds of: (i) the Tranche 1 Subscription; (ii) the Placing; (iii) the WRAP Offer; and (iv) the LIFE Offering is less than US$10,000,000 (a "Tranche 1 Subscription Shortfall"), a subscription for Debt Securities of the Company (the "Tranche 2 Subscription" and, together with the Tranche 1 Subscription, the "Subscription") with an issue price which would give rise to proceeds equal to such Tranche 1 Subscription Shortfall.Purebond's obligation to subscribe for, and the Company's obligation to issue, the Tranche 1 Subscription Shares is conditional upon admission of the Tranche 1 Subscription Shares to trading on AIM.The Company's obligation to issue the Tranche 1 Subscription Shares is also conditional upon (inter alia) acceptance of the terms of the Offering and the Subscription Agreement by the TSX and all other regulatory approvals in accordance with applicable law and regulation, including for greater certainty the AIM Rules, Canadian Securities Laws and the TSX Company Manual.In connection with the Subscription, the Company will issue the Debt Securities to Purebond. Such Debt Securities are expected to be repaid in full and the repayment amount redirected into a subscription for Common Shares one (1) Business Day following the General Meeting, provided shareholder approval is obtained and all other conditions to such repayment and subscription mechanics are satisfied (including TSX approval, as applicable, or otherwise as described in the repayment and subscription agreement between the Company and Purebond). If shareholder approval is not obtained (or the other conditions are not satisfied), such repayment and subscription mechanics will not proceed, and the Debt Securities will remain outstanding. The Company will not complete any subscription, repayment and redirection into Common Shares if it would result in the cumulative issuance of more than 81,183,402 Common Shares (being 25 percent of the Company's issued and outstanding Common Shares as of the date of the agreement) without shareholder approval.WRAP OfferConcurrent with the Placing, the LIFE Offering and the Subscription, there will be a separate offer by the Company on the Winterflood Retail Access Platform ("WRAP") of WRAP Offer Shares at the Issue Price to provide UK retail investors with an opportunity to participate in the Fundraise. The WRAP Offer will be made on terms outlined in a separate announcement to be made shortly. For the avoidance of doubt, the WRAP Offer is not part of the Placing, nor is it underwritten, and is the sole responsibility of the Company.Admission and SettlementApplication will be made for the Offer Shares to be admitted to trading on AIM ("Admission") and the TSX. It is expected that Admission of the First Tranche Shares will take place at or around 8:00 a.m. (London time) on June 10, 2026 (or such later date as may be agreed between the Company, Canaccord and Cavendish). The Placing is conditional upon, inter alia, the completion of the Subscription and the LIFE Offering and Admission becoming effective. The Placing is also conditional upon the Placing Agreement not being terminated in accordance with its terms.It is expected that Admission of the Second Tranche Shares, subject to shareholder approval, will take place at or around 8:00 a.m. (London time) on July 28, 2026.Indicative timetable of principal events 2026Close of the Bookbuild in respect of the Placing7:00 p.m. (London Time) on June 4Close of the Bookbuild in respect of the LIFE Offering6:00 p.m. EDT on June 4Announcement of the initial results of the Subscription, Placing and LIFE OfferingBy 8:00 a.m. (London time) on June 5Announcement of the results of the WRAP Offer and the final results of the Subscription, Placing and LIFE OfferingBy 8:00 a.m. (London time) on June 8Settlement of the Placing Shares, the LIFE Offering Shares, the Retail Shares, the First Tranche Subscription Shares, and the Debt SecuritiesJune 10Announcement of the Closing of the FundraiseBy 11:00 p.m. EDT on June 10Posting of the Notice of 2026 Annual and Special Meeting of Shareholders and Management Information Circular to shareholdersJune 23Special Meeting and Annual General MeetingJuly 23Repayment of the Debt Securities and Admission of the Second Tranche SharesOn or about July 28The timing of the closing of the Subscription, the Bookbuild, the LIFE Offering and the WRAP Offer and allocations are at the absolute discretion of the Company and, where applicable, the Joint Bookrunners or Canadian Adviser. If any of the details contained in the timetable above should change, the revised times and dates will be notified to Shareholders by means of an announcement through a Regulatory Information Service.Certain of the events in the above timetable are conditional upon, inter alia, the approval of the Resolutions to be proposed at the General Meeting.This Announcement should be read in its entirety. In particular, you should read and understand Appendix 1 and the information provided in the "Important Notice to Investors" section of this Announcement.Touchstone Exploration Inc.Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP".For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:Touchstone Exploration Inc.
Paul R. Baay, President and Chief Executive Officer Tel:
Scott Budau, Chief Financial Officer
Brian Hollingshead, EVP Engineering and Business Development+1 (403) 750-4487 Canaccord Genuity (Nominated Advisor and Joint Broker)
Adam James / Charlie Hammond
Sam Lucas / Darren FurbyTel: +44 (0) 207 523 8000 Cavendish Capital Markets Limited (Joint Broker)
Neil McDonald / Derrick Lee / Graham HallTel: +44 (0) 131 220 6939 FTI Consulting (Financial PR)
Nick Hennis / Ben BrewertonTel: +44 (0) 203 727 1000
Email: touchstone@fticonsulting.comAdvisoriesCertain information contained in this Announcement would have been deemed inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time, until the release of this Announcement.Exchange RateFor reference purposes in this Announcement, one British pound has been converted into United States dollars at a rate of 1.00 to US$1.3426 and Canadian dollars at a rate of 1.00 to C$1.8640.Forward-looking StatementsThe information provided in this Announcement contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends"and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this Announcement speak only as of the date hereof and are expressly qualified by this cautionary statement.Specifically, this Announcement includes, but is not limited to, forward-looking statements relating to: the UK Placing, the WRAP Offer, the LIFE Offering and the Subscription, including the size, pricing and timing thereof, the type of securities being offered thereunder (including any Debt Securities), the investors participating therein, the intended use of proceeds therefrom (including with respect to future exploration, development and production activities and the locations thereof), the conditions and approvals required and applications being filed in connection therewith; the Company's business plans, strategies, priorities and development plans; anticipated developmental drilling and facility upgrade activities, including locations, the timing thereof and related production and cash flows therefrom; estimated field estimated production rates; projected future production rates; expected future pricing under various LNG contracts; the Company's expectation of removing its going concern note in the future; the Company's ability to amend its current loan agreement and/or obtain future waivers for projected financial covenant breaches; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund current obligations future capital expenditures. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2025 Annual Information Form dated March 30, 2026 which is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). The forward-looking statements contained in this Announcement are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.This Announcement contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Touchstone's prospective results of operations and production included in its 2026 development plan and resulting production potential, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the paragraphs above.The FOFI contained in this Announcement was approved by Management as of the date of this Announcement and was provided for the purpose of providing further information about Touchstone's future business operations. This information has been provided for illustration only and, with respect to future periods, is based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes. Touchstone and its Management believe that FOFI has been prepared on a reasonable basis, reflecting Management's best estimates and judgments, and represents, to the best of Management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Touchstone disclaims any intention or obligation to update or revise any FOFI contained herein, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained herein should not be used for purposes other than for which it is disclosed herein, and the FOFI contained herein is not conclusive and is subject to change. Variations in forecasted commodity prices, differences in the amount and timing of capital expenditures, and variances in average production estimates and decline rates can have a significant impact on the key performance measures included in the guidance disclosed herein. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance that such operating results will be achieved and, accordingly, the complete financial effects of the forecasted costs, expenditures, prices and operating results are not objectively determinable. The actual results of the Company's operations and the resulting financial results will vary from the amounts set forth in this Announcement and such variations may be material.Oil and Natural Gas MeasuresTo provide a single unit of production for analytical purposes, natural gas production has been converted mathematically to barrels of oil equivalent. The Company uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalent conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and may be misleading, particularly if used in isolation, as the value ratio between crude oil and natural gas based on current commodity prices may differ significantly from the 6:1 energy equivalency ratio.Product Type DisclosuresThis Announcement includes references to April 2026 average daily production. In accordance with NI 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), disclosure of production volumes must include segmentation by product type as defined in the instrument. In this Announcement, references to "crude oil and liquids" include the combined product types light and medium crude oil, condensate and propane, and references to "natural gas" refer to conventional natural gas, all as defined in the instrument.This Announcement includes references to crude oil, NGLs, crude oil and liquids, natural gas average daily production volumes. Under NI 51-101, disclosure of production volumes should include segmentation by product type as defined in the instrument. In this Announcement, references to "crude oil" refer to light and medium crude oil and heavy crude oil; references to "NGLs" refer to condensate and propane; and references to "natural gas" refer to conventional natural gas, all as defined in the instrument. References to "crude oil and liquids" include crude oil and NGLs.The Company's average net production volumes for April 2026 consist of the following product types as defined in NI 51-101 using a conversion of 6 Mcf to 1 boe where applicable.PeriodLight and Medium Crude Oil (bbls/d)Condensate
(bbls/d)Other NGLs
(bbls/d)Conventional Natural Gas (Mcf/d)Total Oil Equivalent (boe/d) April 202698115833219,3744,700 For further information regarding specific product disclosures in accordance with NI 51-101, including first quarter 2026 average daily production information by product type, please refer to the "Advisories - Product Type Disclosures" section of the Company's most recent Management's discussion and analysis for the three months ended March 31, 2026 accompanying the March 31, 2026 unaudited interim condensed consolidated financial statements, both of which are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com).AbbreviationsThe following abbreviations may be referenced in this Announcement:bbl(s)barrel(s)bbls/dbarrels per dayboebarrels of oil equivalentboe/dbarrels of oil equivalent per dayMcfthousand cubic feetMcf/dthousand cubic feet per dayBcfbillion cubic feetLNGliquefied natural gasNGL(s)natural gas liquid(s)US$United States dollarsC$Canadian dollars£Pounds sterlingImportant Notice to InvestorsNo prospectus or admission document has been or will be filed, published or made available in connection with the matters described in this Announcement.Members of the public are not eligible to take part in the Placing. In any EEA Member State, this Announcement is only addressed to and directed at persons in such member states who are qualified investors within the meaning of Article 2(e) of the Prospectus Regulation (EU) 2017/1129 (as amended) (the "EU Prospectus Regulation") including any implementing measure in any member state ("Qualified Investors"). In addition, in the United Kingdom, this Announcement is addressed and directed only at persons who are qualified investors within the meaning of paragraph 15 of Schedule 1 of the Public Offers and Admissions to Trading Regulations 2024 ("POATR") and who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) are persons who are high net worth entities falling within Article 49(2)(a) to (d) of the Order, and (iii) to persons to whom it may otherwise be lawful to communicate it to (all such persons being referred to as "Relevant Persons"). Any investment or investment activity to which this Announcement relates is available only to Relevant Persons and will be engaged in only with such persons. Other persons should not rely or act upon this Announcement or any of its contents. This Announcement must not be acted on or relied on by persons who are not Relevant Persons. Persons distributing this Announcement must satisfy themselves that it is lawful to do so. Any investment or investment activity to which this Announcement relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This Announcement does not itself constitute an offer for sale or subscription of any securities in the Company.All offers of the Placing Shares in the EEA and the United Kingdom will be made pursuant to an exemption under the EU Prospectus Regulation and POATR (respectively) from the requirement to produce a prospectus. In the United Kingdom, this Announcement is being directed solely at persons in circumstances in which section 21(1) of the Financial Services and Markets Act 2000 (as amended) ("FSMA") does not require the approval of the Announcement by an authorised person.Neither this Announcement nor any copy of it may be taken or transmitted, published or distributed, directly or indirectly, in whole or in part, in, into or from the United States of America (including its territories and possessions, any state of the United States of America (the "United States" or the "US")), Australia, Japan or the Republic of South Africa or transmitted, distributed to, or sent by, any national or resident or citizen of any such countries or any other jurisdiction where to do so would constitute a violation of the relevant securities laws of such jurisdiction (each a "Restricted Jurisdiction"). Any failure to comply with this restriction may constitute a violation of United States, Australian, Japanese or South African securities laws.This Announcement does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or other securities in any Restricted Jurisdiction or in Canada, except for the LIFE Offering in each of the provinces of Canada other than Quebec made pursuant to the Listed Issuer Financing Exemption. The Fundraise and the distribution of this Announcement and other information in connection with the Fundraise and Admission in certain jurisdictions may be restricted by law and persons into whose possession this Announcement and any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.No offer or sale of any securities is being made in Canada under this Announcement other than the LIFE Offering made pursuant to the Listed Issuer Financing Exemption under Part 5A of NI 45-106. The Placing Shares, the WRAP Offer Shares and the Subscription Shares are not being offered or sold in any of the provinces or territories of Canada. No securities commission or similar authority in any jurisdiction of Canada has reviewed or passed upon the merits of the securities offered under the LIFE Offering or reviewed this Announcement, and any representation to the contrary is an offence. The Company is relying on the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions in connection with the LIFE Offering and, as a consequence, purchasers in the LIFE Offering have statutory rights of action for rescission or damages for misrepresentation in the offering document and certain other disclosure under applicable Canadian securities laws.The Offer Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or under the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. The Offer Shares have not been and will not be approved or disapproved by the United States Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the Fundraise or the accuracy or adequacy of this Announcement. Any representation to the contrary is a criminal offence in the United States.The information contained in this Announcement is for background purposes only and does not purport to be full or complete. No reliance may or should be placed for any purposes whatsoever on the information contained in this Announcement or its accuracy, completeness or fairness. The information in this Announcement is subject to change. However, the Company does not undertake to provide the recipient of this Announcement with any additional information, or to update this Announcement or to correct any inaccuracies, and the distribution of this Announcement shall not be deemed to be any form of commitment on the part of the Company to proceed with the Placing or the WRAP Offer or any transaction or arrangement referred to in this Announcement.For the purposes of UK MAR and Article 2 of the binding technical standards published by the Financial Conduct Authority in relation to MAR as regards Commission Implementing Regulation (EU) 2016/1055, the person responsible for the release of this Announcement is Paul Baay (President and Chief Executive Officer).Canaccord Genuity Limited ("Canaccord") which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as Nominated Adviser and Lead Bookrunner for Touchstone and for no-one else in connection with the subject matter of this Announcement and will not be responsible to anyone other than Touchstone for providing the protections afforded to clients of Canaccord, or for providing advice in relation to any matter referred to herein.Cavendish Capital Markets Limited ("Cavendish") which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as a Joint Bookrunnerfor Touchstone and for no-one else in connection with the subject matter of this Announcement and will not be responsible to anyone other than Touchstone for providing the protections afforded to clients of Cavendish, or for providing advice in relation to any matter referred to herein.No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by either Canaccord or Cavendish or by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefor is expressly disclaimed.Neither Canaccord nor Cavendish, nor any of their subsidiaries or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Canaccord or Cavendish (as the case may be) in connection with this Announcement, any statement contained herein or otherwise.No statement in this Announcement is intended to be a profit forecast or estimate, and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser.The Offer Shares to be issued pursuant to the Fundraise will not be admitted to trading on any stock exchange other than on AIM and the TSX.Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this Announcement.Information to Distributors - UK Product Governance RequirementsSolely for the purposes of the product governance requirements contained within chapter 3 of the FCA Handbook Product Intervention and Product Governance Sourcebook (the UK Product Governance Requirements) and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the UK Product Governance Requirements) may otherwise have with respect thereto, the securities the subject of the Fundraise have been subject to a product approval process, which has determined that such securities are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in chapter 3 of the FCA Handbook Conduct of Business Sourcebook (COBS); and (ii) eligible for distribution through all permitted distribution channels (the UK Target Market Assessment). Notwithstanding the UK Target Market Assessment, distributors should note that: the price of the securities the subject of the Fundraise may decline and investors could lose all or part of their investment; the securities offer no guaranteed income and no capital protection; and an investment in the securities is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The UK Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Fundraise. Furthermore, it is noted that, notwithstanding the UK Target Market Assessment, Canaccord and Cavendish will only procure investors who meet the criteria of professional clients and eligible counterparties.For the avoidance of doubt, the UK Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of chapters 9A or 10A respectively of the COBS; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the securities the subject of the Fundraise. Each distributor is responsible for undertaking its own target market assessment in respect of the securities and determining appropriate distribution channels.Information to Distributors - EU Product Governance RequirementsSolely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended (MiFID II); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the MiFID II Product Governance Requirements), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the securities the subject of the Fundraise have been subject to a product approval process, which has determined that such securities are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the EU Target Market Assessment). Notwithstanding the EU Target Market Assessment, Distributors should note that: the price of the securities the subject of the Fundraise may decline and investors could lose all or part of their investment; the securities offer no guaranteed income and no capital protection; and an investment in the securities is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The EU Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Fundraise. Furthermore, it is noted that, notwithstanding the EU Target Market Assessment, Canaccord and Cavendish will only procure investors who meet the criteria of professional clients and eligible counterparties.For the avoidance of doubt, the EU Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the securities the subject of the Fundraise. Each distributor is responsible for undertaking its own target market assessment in respect of the securities and determining appropriate distribution channels.APPENDIX 1 - TERMS AND CONDITIONS OF THE UK PLACINGIMPORTANT INFORMATION FOR INVITED UK PLACEES ONLY REGARDING THE UK PLACINGMEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS ANNOUNCEMENT, INCLUDING THIS APPENDIX 1 AND THE TERMS AND CONDITIONS SET OUT HEREIN (TOGETHER, THIS "ANNOUNCEMENT") (WHICH IS FOR INFORMATION PURPOSES ONLY) ARE DIRECTED ONLY AT: (A) PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (THE "EEA") WHO ARE QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 2(e) OF REGULATION (EU) 2017/1129 AND (B) PERSONS IN THE UNITED KINGDOM WHO ARE QUALIFIED INVESTORS WITHIN THE MEANING OF PARAGRAPH 15 OF SCHEDULE 1 OF THE PUBLIC OFFERS AND ADMISSIONS TO TRADING REGULATIONS 2024 ("POATR") AND (C) IN THE UNITED KINGDOM, QUALIFIED INVESTORS WHO ARE PERSONS WHO: (I) HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS WHO FALL WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 AS AMENDED (THE "ORDER") (INVESTMENT PROFESSIONALS); (II) ARE PERSONS FALLING WITHIN ARTICLE 49(2)(A) TO (D) (HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC) OF THE ORDER; OR (III) ARE PERSONS TO WHOM IT MAY OTHERWISE BE LAWFULLY COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS").THIS ANNOUNCEMENT AND THE INFORMATION IN IT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. PERSONS DISTRIBUTING THIS ANNOUNCEMENT MUST SATISFY THEMSELVES THAT IT IS LAWFUL TO DO SO. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. THIS ANNOUNCEMENT DOES NOT ITSELF CONSTITUTE AN OFFER FOR THE SALE OR SUBSCRIPTION OR A SOLICITATION OF AN OFFER TO BUY OR ACQUIRE OF ANY SECURITIES IN THE COMPANY IN THE UNITED STATES OR ELSEWHERE.THE PLACING SHARES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR JURISDICTION OF THE UNITED STATES OR UNDER ANY SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, RESOLD, PLEDGED, TRANSFERRED OR DELIVERED, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE, AND IN COMPLIANCE WITH THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES. THE PLACING SHARES ARE BEING OFFERED AND SOLD ONLY (I) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT AND OTHERWISE IN ACCORDANCE WITH APPLICABLE LAWS; OR (II) OTHERWISE PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFER OF THE SECURITIES MENTIONED HEREIN IN THE UNITED STATES. THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL (THE "RESTRICTED JURISDICTIONS"). NO PUBLIC OFFERING OF THE PLACING SHARES IS BEING MADE IN THE UNITED STATES, THE UNITED KINGDOM OR ELSEWHERE WHERE SUCH OFFERING WOULD BE UNLAWFUL.EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISORS AS TO LEGAL, TAX, BUSINESS AND RELATED ASPECTS OF A PURCHASE OF PLACING SHARES.The Placing Shares have not been approved or disapproved by the US Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States nor have any of the foregoing authorities passed upon or endorsed the merits of the Placing or the accuracy or adequacy of this Announcement. Any representation to the contrary is a criminal offence in the United States. The relevant clearances have not been, nor will they be, obtained from the securities commission of any province or territory of Canada, no prospectus has been lodged with, or registered by, the Australian Securities and Investments Commission or the Japanese Ministry of Finance; the relevant clearances have not been, and will not be, obtained for the South Africa Reserve Bank or any other applicable body in the Republic of South Africa in relation to the Placing Shares and the Placing Shares have not been, nor will they be registered under or offered in compliance with the securities laws of any state, province or territory of Australia, Canada, the Republic of South Africa or Japan. Accordingly, the Placing Shares may not (unless an exemption under the relevant securities laws is applicable) be offered, sold, resold or delivered, directly or indirectly, in or into Australia, Canada, the Republic of South Africa or Japan or any other jurisdiction outside the EEA.The Placing Shares have not been and will not be qualified for distribution in Canada and no prospectus has been filed in Canada in connection with the Placing Shares. Accordingly, no sale of the Placing Shares in Canada is permitted. The Company intends to rely on Alberta Securities Commission Rule 72-501 - Distributions to Purchasers Outside Alberta in connection with the distribution of the Placing Shares to purchasers of Placing Shares. No advertisement or other marketing materials in respect of the Placing Shares are directed to persons in Canada. Any sales of Common Shares in Canada will be made pursuant to the LIFE Offering.Persons (including without limitation, nominees and trustees) who have a contractual right or other legal obligations to forward a copy of this Announcement should seek appropriate advice before taking any action.This Announcement should be read in its entirety. In particular, any Placee should read and understand the information provided in the "Important Notice" section of this Announcement.By participating in the Bookbuild and the Placing, each Placee will be deemed to have read and understood this Announcement in its entirety, to be participating, making an offer and acquiring Placing Shares on the terms and conditions contained herein and to be providing the representations, warranties, indemnities, acknowledgements and undertakings contained in this Appendix 1.In particular, each such Placee represents, warrants, undertakes, agrees and acknowledges (amongst other things) that:it is a Relevant Person and undertakes that it will acquire, hold, manage or dispose of any Placing Shares that are allocated to it for the purposes of its business;in the case of a Relevant Person in the United Kingdom or a member state of the EEA which has implemented the Prospectus Regulation (each, a "Relevant Member State") who acquires any Placing Shares pursuant to the Placing:it is a Qualified Investor within the meaning of the EU Prospectus Regulation or the POATR; andin the case of any Placing Shares acquired by it as a financial intermediary, as that term is used in Article 5(1) of the EU Prospectus Regulation and Article 7(4) of the POATR:the Placing Shares acquired by it in the Placing have not been acquired on behalf of, nor have they been acquired with a view to their offer or resale to, persons in the United Kingdom or any Relevant Member State other than Qualified Investors or in circumstances in which the prior consent of Canaccord and/or Cavendish has been given to the offer or resale; andwhere Placing Shares have been acquired by it on behalf of persons in the United Kingdom or any Relevant Member State other than Qualified Investors, the offer of those Placing Shares to it is not treated under the EU Prospectus Regulation or POATR as having been made to such persons;it is acquiring the Placing Shares for its own account or is acquiring the Placing Shares for an account with respect to which it exercises sole investment discretion and has the authority to make and does make the representations, warranties, indemnities, acknowledgements, undertakings and agreements contained in this Announcement;it understands (or if acting for the account of another person, such person has confirmed that such person understands) the resale and transfer restrictions set out in this Appendix 1; andeach of the Company, Canaccord and Cavendish will rely upon the truth and accuracy of the foregoing representations, warranties, undertakings, agreements and acknowledgements.No prospectusThe Placing Shares are being offered to a limited number of specifically invited persons only and will not be offered in such a way as to require any prospectus or other offering document to be published. No prospectus or other offering document has been or will be submitted to be approved by the FCA in relation to the Placing or the Placing Shares and Placees' commitments will be made solely on the basis of their own assessment of the Company, the Placing Shares and the Placing based on the information contained in this Announcement and the announcement confirming the close of the Placing and giving details of the results of the Placing (the "Result of Placing Announcement") (together, the "Placing Documents") and any information publicly announced through a regulatory information service ("RIS") by or on behalf of the Company on or prior to the date of this Announcement (the "Publicly Available Information") and subject to any further terms set forth in the Form of Confirmation sent to Placees by the Joint Bookrunners to confirm their acquisition of Placing Shares.Each Placee, by participating in the Placing, agrees that the content of the Placing Documents is exclusively the responsibility of the Company and confirms that it has neither received nor relied on any information (other than the Publicly Available Information), representation, warranty or statement made by or on behalf of the Joint Bookrunners or the Company or any other person and none of the Joint Bookrunners, the Company nor any other person acting on such person's behalf nor any of their respective affiliates has or shall have any responsibility or liability for any Placee's decision to participate in the Placing based on any other information, representation, warranty or statement (regardless of whether or not such information, representation, warranty or statement was given or made by or on behalf of any such persons). Each Placee acknowledges and agrees that it has relied on its own investigation of the business, financial or other position of the Company in accepting a participation in the Placing. No Placee should consider any information in this Announcement to be legal, tax or business advice. Each Placee should consult its own legal adviser, tax advisor and business advisor for legal, tax and business advice regarding an investment in the Placing Shares. Nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation.Details of the Placing Agreement and the Placing SharesCanaccord and Cavendish are acting as joint bookrunners in connection with the Placing and have entered into the Placing Agreement with the Company under which, on the terms and subject to the conditions set out in the Placing Agreement, the Joint Bookrunners, as agents for and on behalf of the Company, have agreed to use their respective reasonable endeavours to procure placees for the Placing Shares. The Placing is not being underwritten by the Joint Bookrunners or any other person. The Placing is not subject to clawback in favour of the Subscription or the WRAP Offer. The Placing is not conditional on the completion of the WRAP Offer but is conditional on non-termination of the Subscription.The price per Common Share at which the Placing Shares are to be placed (the "Issue Price") is 7 pence per Placing Share. The timing of the closing of the book, pricing and allocations are at the discretion of the Company and the Joint Bookrunners. Details of the total number of Placing Shares will be announced as soon as practicable after the close of the Bookbuild via the Result of Placing Announcement.The Board is authorised to approve the issuance of the Placing Shares pursuant to the Business Corporations Act (Alberta) and the Company's articles, and no further shareholder approval is required for the issuance of the Placing Shares under the Placing. The Placing Shares have been or will be duly authorized and, when issued, will be fully paid and non-assessable and will rank pari passu in all respects with the Company's existing Common Shares, including the right to receive all dividends and other distributions declared, made or paid on or in respect of the Common Shares after the date of issue of the Placing Shares, and will be issued free and clear of all claims, liens, charges, encumbrances and equities.Application for admission to tradingApplications will be made to the London Stock Exchange plc (the "London Stock Exchange") and to the Toronto Stock Exchange ("TSX") (the "Applications") for admission to trading of the Placing Shares on AIM and TSX, respectively.It is expected that Admission of the Placing Shares will occur at or before 8:00 a.m. on June 10, 2026 (or such later time or date as the Joint Bookrunners may agree with the Company, being no later than 8:00 a.m. on June 17, 2026) and that dealings in the Placing Shares will commence at that time.BookbuildThe Joint Bookrunners will today commence the accelerated bookbuilding process to determine demand for participation in the Placing by Placees (the "Bookbuild"). This Announcement gives details of the terms and conditions of, and the mechanics of participation in, the Placing. No commissions will be paid to Placees or by Placees in respect of any Placing Shares.The Joint Bookrunners and the Company shall be entitled to effect the Placing by such alternative method to the Bookbuild as they may, in their sole discretion, determine.Participation in, and principal terms of, the PlacingCanaccord and Cavendish are arranging the Placing as joint bookrunners and placing and settlement agents of the Company.Participation in the Placing will only be available to persons who may lawfully be, and are, invited to participate by the Joint Bookrunners. Each of Canaccord and/or Cavendish may itself agree to be a Placee in respect of all or some of the Placing Shares or may nominate any member of its respective group to do so.The Bookbuild, if successful, will establish the aggregate amount payable to Canaccord and Cavendish, as settlement agents for the Company, by all Placees whose bids are successful. The number of Placing Shares will be agreed by the Joint Bookrunners (in consultation with the Company) following completion of the Bookbuild. The number of Placing Shares to be issued (in aggregate) will be announced on an RIS following the completion of the Bookbuild via the Result of Placing Announcement.To bid in the Bookbuild, prospective Placees should communicate their bid orally by telephone or in writing to their usual sales contact at Canaccord or Cavendish. Each bid should state the number of Placing Shares which the prospective Placee wishes to subscribe for at the Issue Price. Bids may be scaled down by the Joint Bookrunners on the basis referred to in paragraph 5 below. The Joint Bookrunners reserve the right not to accept bids or to accept bids in part rather than in whole. The acceptance of the bids shall be at the Joint Bookrunners' absolute discretion, subject to agreement with the Company.The Bookbuild is expected to close no later than 7:00 p.m. on June 4, 2026 but may be closed earlier or later at the discretion of the Joint Bookrunners. The Joint Bookrunners may, in agreement with the Company, accept bids that are received after the Bookbuild has closed. The Company reserves the right (upon the agreement of the Joint Bookrunners) to reduce the number of shares to be issued pursuant to the Placing, in its absolute discretion.Allocations of the Placing Shares will be determined by the Joint Bookrunners after consultation with the Company (the proposed allocations having been supplied by the Joint Bookrunners to the Company in advance of such consultation). Allocations will be confirmed orally by Canaccord or Cavendish and a Form of Confirmation will be dispatched as soon as possible thereafter. Canaccord or Cavendish's oral confirmation to such Placee constitutes an irrevocable legally binding commitment upon such person (who will at that point become a Placee), in favour of that Joint Bookrunner and the Company, to acquire the number of Placing Shares allocated to it and to pay the Issue Price in respect of such shares on the terms and conditions set out in this Appendix 1 and in accordance with the Company's Articles and by-laws. A bid in the Bookbuild will be made on the terms and subject to the conditions in this Announcement (including this Appendix 1) and will be legally binding on the Placee on behalf of which it is made and except with the Joint Bookrunners' consent, such commitment will not be capable of variation or revocation after the time at which it is submitted.Each Placee's allocation and commitment will be evidenced by a Form of Confirmation issued to such Placee. The terms of this Appendix 1 will be deemed incorporated into that Form of Confirmation.Irrespective of the time at which a Placee's allocation pursuant to the Placing is confirmed, settlement for all Placing Shares to be subscribed for pursuant to the Placing will be required to be made at the same time in respect of each such tranche, on the basis explained below under "Registration and Settlement".All obligations under the Bookbuild and the Placing will be subject to fulfilment or (where applicable) waiver of the conditions referred to below under "Conditions of the Placing" and to the Placing not being terminated on the basis referred to below under "Right to terminate under the Placing Agreement".By participating in the Placing, each Placee agrees that its rights and obligations in respect of the Placing will terminate only in the circumstances described below and will not be capable of rescission or termination by the Placee.To the fullest extent permissible by law, none of Canaccord, Cavendish, or the Company, nor any of their respective affiliates, agents, directors, officers or employees shall have any responsibility or liability to Placees (or to any other person whether acting on behalf of a Placee or otherwise). In particular, none of Canaccord, Cavendish, the Company, nor any of their respective affiliates, agents, directors, officers or employees shall have any responsibility or liability (including to the extent permissible by law, any fiduciary duties) in respect of the Joint Bookrunners' conduct of the Placing.The Placing Shares will be issued subject to the terms and conditions of this Announcement and each Placee's commitment to subscribe for Placing Shares on the terms set out herein will continue notwithstanding any amendment that may in future be made to the terms and conditions of the Placing and Placees will have no right to be consulted or require that their consent be obtained with respect to the Company's or the Joint Bookrunners' conduct of the Placing.All times and dates in this Announcement may be subject to amendment. Canaccord and/or Cavendish shall notify the Placees and any person acting on behalf of the Placees of any changes.Conditions of the PlacingThe Placing is conditional upon the Placing Agreement becoming unconditional and not having been terminated in accordance with its terms.The Joint Bookrunners' obligations under the Placing Agreement in respect of, amongst other things, the Placing are conditional on inter alia:the Placing Shares having been allotted, conditional only on Admission;Admission occurring on or around 8:00 a.m. on June 10, 2026 (or such later time or date as the Joint Bookrunners may otherwise agree with the Company, being no later than 8:00 a.m. on June 17, 2026) (the "Long Stop Date");the Result of Placing Announcement having been released to an RIS by no later than 8:00 a.m. on the Business Day following the date of the Placing Agreement (or such later time or date as the Joint Bookrunners may otherwise agree with the Company);the Subscription Agreement having been duly entered into by both parties, having become wholly unconditional in respect of the Tranche 1 Subscription Shares (save in respect of Admission) and not having been terminated;the delivery by the Company to the Joint Bookrunners of a certificate providing certain confirmations relating, inter alia, to Admission signed by a Director for and on behalf of the Company not later than 5.00 p.m. on the Business Day immediately prior to the date on which Admission is expected to occur (and dated as of such date);the Company having complied in all material respects with its obligations which fall to be performed on or prior to Admission (i) under the Placing Agreement and (ii) in respect of the Life Offering;receipt from the TSX of a conditional acceptance of the Placing; andnone of the warranties on the part of the Company in the Placing Agreement being untrue or inaccurate when made and none of the warranties ceasing to be true and accurate at any time prior to Admission by reference to the facts and circumstances then subsisting,(together the "Conditions" and each a "Condition").The Joint Bookrunners may (acting together), at their sole discretion and upon such terms as they think fit, waive compliance by the Company with the whole or any part of any of the Company's obligations in relation to the Conditions or extend the time or date provided for fulfilment of any such Conditions in respect of all or any part of the performance thereof. The conditions in the Placing Agreement relating to an Admission taking place prior to the Long Stop Date may not be waived nor can the Condition relating to the admission of the Offer Shares to trading on the TSX. Any such extension or waiver will not affect Placees' commitments as set out in this Announcement.If: (i) any of the Conditions are not fulfilled or (where permitted) waived by the Joint Bookrunners by the relevant time or date specified (or such later time or date as the Joint Bookrunners may agree with the Company, being no later than 8:00 a.m. on the Long Stop Date); or (ii) the Placing Agreement is terminated in the circumstances specified below under "Right to terminate under the Placing Agreement", the Placing will not proceed and the Placees' rights and obligations hereunder in relation to the Placing Shares shall cease and terminate at such time and each Placee agrees that no claim can be made by it or on its behalf (or any person on whose behalf the Placee is acting) in respect thereof.None of Canaccord, Cavendish or the Company, nor any of their respective affiliates, agents, directors, officers or employees shall have any liability to any Placee (or to any other person whether acting on behalf of a Placee or otherwise) in respect of any decision they may make as to whether or not to waive or to extend the time and/or date for the satisfaction of any Condition to the Placing, nor for any decision they may make as to the satisfaction of any Condition or in respect of the Placing generally, and by participating in the Placing each Placee agrees that any such decision is within the absolute discretion of the Joint Bookrunners.Right to terminate under the Placing AgreementCanaccord (in respect of all parties) and Cavendish (in respect of itself only) are entitled, at any time before Admission, to terminate the Placing Agreement in accordance with its terms in certain circumstances, including (amongst other things):the Subscription Agreement is terminated by either party or any party is in material breach of any of its obligations under the Subscription Agreement;if the Company is in material breach of the Placing Agreement;the Company is in material breach of the terms governing the Life Offering;where any of the warranties contained in the Placing Agreement is, or would be if repeated immediately prior to Admission (by reference to the facts and circumstances then existing), untrue or inaccurate in any respect or misleading;if any of the Conditions have (i) become incapable of satisfaction or (ii) not been satisfied before the latest time provided in the Placing Agreement and have not been waived if capable of being waived by the Joint Bookrunner (as applicable);there has been a development or event resulting in a Material Adverse Effect and which could in the good faith opinion of the Joint Bookrunners (as applicable), makes it impractical or inadvisable to proceed with the Placing, or may materially and adversely impact dealings in the new Common Shares whether or not foreseeable at the date of the Placing Agreement; orthe occurrence of certain or other adverse changes or certain majeure events.Upon termination by Canaccord prior to Admission, the parties to the Placing Agreement shall be released and discharged (except for any liability arising before or in relation to such termination) from their respective obligations under or pursuant to the Placing Agreement, subject to certain exceptions. Upon termination by Cavendish prior to Admission, Cavendish shall be released and discharged (except for any liability arising before or in relation to such termination) from its obligations under or pursuant to the Placing Agreement, subject to certain exceptions but, for the avoidance of doubt, the Placing may still continue subject to termination by Canaccord.By participating in the Placing, each Placee agrees that (i) the exercise by the Joint Bookrunners of any respective right of termination or of any other discretion under the Placing Agreement shall be within their absolute respective discretion and that no Joint Bookrunner need make any reference to, or consult with, Placees and that it shall have no liability to Placees whatsoever in connection with any such exercise or failure to so exercise and (ii) its rights and obligations terminate only in the circumstances described above under "Right to terminate under the Placing Agreement" and "Conditions of the Placing", and its participation will not be capable of rescission or termination by it after oral confirmation by a Joint Bookrunner of the allocation and commitments following the close of the Bookbuild.Restriction on Further Issue of SharesThe Company has undertaken to the Joint Bookrunners that, between the date of the Placing Agreement and for three months after Admission (the "Restricted Period"), it will not, without the prior written consent of the Joint Bookrunners, directly or indirectly offer, issue, sell or contract to sell, issue options in respect of or otherwise dispose of or announce an offering or issue of any Common Shares (or any interest therein or in respect thereof) or any other securities exchangeable for or convertible into, or substantially similar to, Common Shares or enter into any transaction with the same economic effect as, or agree to do, any of the foregoing (whether or not legally or contractually obliged to do so) provided that the foregoing restrictions shall not restrict the ability of the Company or any other member of the Group during the Restricted Period to grant options under, or the allotment and issue of shares pursuant to options under, any employee or non-executive share or option schemes or long term incentive plans of the Company (in accordance with its normal practice) or completion of the Subscription (in accordance with the terms of the Subscription Agreement).By participating in the Placing, Placees agree that the exercise by the Joint Bookrunners of any power to grant consent to the undertaking by the Company of a transaction which would otherwise be subject to the restrictive provisions on further issuance under the Placing Agreement shall be within the absolute discretion of the Joint Bookrunners and that they need not make any reference to, or consult with, Placees and that they shall have no liability to Placees whatsoever in connection with any such exercise of the power to grant consent.Registration and SettlementSettlement of transactions in the Placing Shares (ISIN: CA89156L1085) (and the dematerialised depositary interests representing the Placing Shares ("Depositary Interests")) following Admission will take place within the system administered by Euroclear ("CREST"), subject to certain exceptions. Canaccord and Cavendish, as the settlement agents for the Company, reserve the right to require settlement for, and delivery of, the Placing Shares and Depositary Interests (or any part thereof) to Placees by such other means that they may deem necessary if delivery or settlement is not possible or practicable within the CREST system or would not be consistent with the regulatory requirements in the Placee's jurisdiction.It is expected that settlement in respect of the Placing Shares and Depositary Interests will take place on or around June 10, 2026 on a delivery versus payment basis. Each of Canaccord and Cavendish may choose to invoke the CASS Delivery Versus Payment exemption (under CASS 7.11.14R within the FCA Handbook Client Assets Sourcebook) with regard to settlement of funds, in connection with the Placing, should such Joint Bookrunner see fit.Following the close of the Bookbuild, each Placee to be allocated Placing Shares in the Placing will be sent a Form of Confirmation stating the number of Placing Shares allocated to them at the Issue Price, the aggregate amount owed by such Placee to the respective Joint Bookrunner (as settlement agent for the Company) and settlement instructions. Each Placee agrees that it will do all things necessary to ensure that delivery and payment is completed in accordance with the standing CREST or certificated settlement instructions in respect of the Placing Shares and Depositary Interests that it has in place with Canaccord or Cavendish (as applicable).The Company will deliver the Placing Shares and Depositary Interests to CREST accounts operated by the Joint Bookrunners as settlement agents for the Company and the Joint Bookrunners will enter their respective delivery instruction into the CREST system. The input to CREST by a Placee of a matching or acceptance instruction will then allow delivery of the relevant Placing Shares and Depositary Interests to that Placee against payment.Interest is chargeable daily on payments not received from Placees on the due date in accordance with the arrangements set out above at the rate of three percentage points above the prevailing base rate of Barclays Bank plc as determined by the Joint Bookrunners.Each Placee is deemed to agree that, if it does not comply with these obligations, the Joint Bookrunners may sell any or all of the Placing Shares allocated to that Placee on such Placee's behalf and retain from the proceeds, for that Joint Bookrunner's account and benefit, an amount equal to the aggregate amount owed by the Placee plus any interest due. The relevant Placee will, however, remain liable for any shortfall below the aggregate amount owed by it and will be required to bear any stamp duty or stamp duty reserve tax or other taxes or duties (together with any interest or penalties) imposed in any jurisdiction which may arise upon the sale of such Placing Shares on such Placee's behalf.If Placing Shares are to be delivered to a custodian or settlement agent, Placees should ensure that the Form of Confirmation is copied and delivered immediately to the relevant person within that organization. Insofar as Placing Shares are issued in a Placee's name or that of its nominee or in the name of any person for whom a Placee is contracting as agent or that of a nominee for such person, such Placing Shares should, subject as provided below, be so registered free from any liability to UK stamp duty or stamp duty reserve tax. If there are any circumstances in which any stamp duty or stamp duty reserve tax or other similar taxes or duties (including any interest and penalties relating thereto) is payable in respect of the allocation, allotment, issue, sale, transfer or delivery of the Placing Shares and Depositary Interests (or, for the avoidance of doubt, if any stamp duty or stamp duty reserve tax is payable in connection with any subsequent transfer of or agreement to transfer Placing Shares), neither the Joint Bookrunners nor the Company shall be responsible for payment thereof.Representations, warranties, undertakings and acknowledgementsBy participating in the Placing each Placee (and any person acting on such Placee's behalf) irrevocably acknowledges, confirms, undertakes, represents, warrants and agrees (as the case may be) with each of Canaccord and Cavendish (in their capacities as joint bookrunners and placing and settlement agents of the Company in respect of the Placing) and the Company, in each case as a fundamental term of their application for Placing Shares, the following:it has read and understood this Announcement in its entirety and its acquisition of Placing Shares is subject to and based upon all the terms, conditions, representations, warranties, acknowledgements, agreements and undertakings and other information contained herein and it has not relied on, and will not rely on, any information given or any representations, warranties or statements made at any time by any person in connection with the Placing, the Company, the Placing Shares or otherwise other than the information contained in the Placing Documents and the Publicly Available Information;the Common Shares are admitted to trading on AIM and the TSX and that the Company is therefore required to publish certain business and financial information in accordance with the rules and practices of both AIM and the TSX, which includes a description of the Company's business and the Company's financial information, including balance sheets and income statements, and that it is able to obtain or has access to such information without undue difficulty, and is able to obtain access to such information or comparable information concerning any other publicly traded companies, without undue difficulty;the person whom it specifies for registration as holder of the Placing Shares and Depositary Interests will be (a) itself or (b) its nominee, as the case may be. None of Canaccord, Cavendish or the Company will be responsible for any liability to stamp duty or stamp duty reserve tax or other similar taxes or duties imposed in any jurisdiction (including interest and penalties relating thereto) ("Indemnified Taxes"). Each Placee and any person acting on behalf of such Placee agrees to indemnify the Company and the Joint Bookrunners on an after-tax basis in respect of any Indemnified Taxes;neither of the Joint Bookrunners nor any of their respective affiliates agents, directors, officers and employees accepts any responsibility for any acts or omissions of the Company or any of the directors of the Company or any other person in connection with the Placing (and Fundraising more broadly);time is of the essence as regards its obligations under this Announcement;any document that is to be sent to it in connection with the Placing will be sent at its risk and may be sent to it at any address provided by it to the Joint Bookrunners;it will not redistribute, forward, transfer, duplicate or otherwise transmit this Announcement or any part of it, or any other presentational or other material concerning the Placing (including electronic copies thereof) to any person and represents that it has not redistributed, forwarded, transferred, duplicated, or otherwise transmitted any such documents to any person;no prospectus or other offering document is required under the EU Prospectus Regulation or POATR, nor will one be prepared in connection with the Bookbuild, the Placing or the Placing Shares and it has not received and will not receive a prospectus or other offering document in connection with the Bookbuild, the Placing or the Placing Shares;in connection with the Placing, the Joint Bookrunners and any of their respective affiliates acting as an investor for its own account may subscribe for Placing Shares in the Company and in that capacity may retain, purchase or sell for its own account such Placing Shares in the Company and any securities of the Company or related investments and may offer or sell such securities or other investments otherwise than in connection with the Placing. Accordingly, references in this Announcement to the Placing Shares being issued, offered or placed should be read as including any issue, offering or placement of such shares in the Company to the Joint Bookrunners or any of their respective affiliates acting in such capacity;the Joint Bookrunners and their respective affiliates may enter into financing arrangements and swaps with investors in connection with which the Joint Bookrunners and any of their respective affiliates may from time to time acquire, hold or dispose of such securities of the Company, including the Placing Shares;neither Joint Bookrunner intend to disclose the extent of any investment or transactions referred to in paragraphs 9 and 10 above otherwise than in accordance with any legal or regulatory obligation to do so;neither Joint Bookrunner owes any fiduciary or other duties to any Placee in respect of any representations, warranties, undertakings or indemnities in the Placing Agreement;its participation in the Placing is on the basis that it is not and will not be a client of either Joint Bookrunner in connection with its participation in the Placing and that the Joint Bookrunners have no duties or responsibilities to it for providing the protections afforded to their respective clients or customers or for providing advice in relation to the Placing nor in respect of any representations, warranties, undertakings or indemnities contained in the Placing Agreement nor for the exercise or performance of any of their respective rights and obligations thereunder including any rights to waive or vary any conditions or exercise any termination right;the content of the Placing Documents and the Publicly Available Information has been prepared by and is exclusively the responsibility of the Company and neither Joint Bookrunners nor any of their respective affiliates agents, directors, officers or employees nor any person acting on behalf of any of them is responsible for or has or shall have any responsibility or liability for any information, representation or statement contained in, or omission from, this Announcement, the Publicly Available Information or otherwise nor will they be liable for any Placee's decision to participate in the Placing based on any information, representation, warranty or statement contained in this Announcement, the Publicly Available Information or otherwise, provided that nothing in this paragraph excludes the liability of any person for fraudulent misrepresentation made by such person;the only information on which it is entitled to rely and on which such Placee has relied in committing itself to subscribe for Placing Shares is contained in the Placing Documents or any Publicly Available Information (save that in the case of Publicly Available Information, a Placee's right to rely on that information is limited to the right that such Placee would have as a matter of law in the absence of this paragraph 15), such information being all that such Placee deems necessary or appropriate and sufficient to make an investment decision in respect of the Placing Shares;it has neither received nor relied on any other information given, or representations, warranties or statements, express or implied, made, by either of the Joint Bookrunners or the Company nor any of their respective affiliates, agents, directors, officers or employees acting on behalf of any of them (including in any management presentation delivered in respect of the Bookbuild) with respect to the Company, the Placing or the Placing Shares or the accuracy, completeness or adequacy of any information contained in the Placing Documents, or the Publicly Available Information or otherwise;neither Joint Bookrunner nor the Company, nor any of their respective affiliates, agents, directors, officers or employees or any person acting on behalf of any of them has provided, nor will provide, it with any material or information regarding the Placing Shares or the Company or any other person other than the information in the Placing Documents or the Publicly Available Information; nor has it requested any Joint Bookrunner, the Company, any of their respective affiliates or any person acting on behalf of any of them to provide it with any such material or information;neither Joint Bookrunner nor the Company will be liable for any Placee's decision to participate in the Placing based on any other information, representation, warranty or statement, provided that nothing in this paragraph excludes the liability of any person for fraudulent misrepresentation made by that person;it may not rely, and has not relied, on any investigation that either Joint Bookrunner or any of their respective affiliates or any person acting on any of their behalf, may have conducted with respect to the Placing Shares, the terms of the Placing or the Company, and none of such persons has made any representation, express or implied, with respect to the Company, the Placing, the Placing Shares or the accuracy, completeness or adequacy of the information in the Placing Documents, the Publicly Available Information or any other information;in making any decision to subscribe for Placing Shares it:has such knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of subscribing for the Placing Shares;will not look to Canaccord or Cavendish for all or part of any such loss it may suffer;is experienced in investing in securities of this nature in this sector and is aware that it may be required to bear, and is able to bear, the economic risk of an investment in the Placing Shares;is able to sustain a complete loss of an investment in the Placing Shares;has no need for liquidity with respect to its investment in the Placing Shares;has made its own assessment and has satisfied itself concerning the relevant tax, legal, currency and other economic considerations relevant to its investment in the Placing Shares; andhas conducted its own due diligence, examination, investigation and assessment of the Company, the Placing Shares and the terms of the Placing and has satisfied itself that the information resulting from such investigation is still current and relied on that investigation for the purposes of its decision to participate in the Placing;it is subscribing for the Placing Shares for its own account or for an account with respect to which it exercises sole investment discretion and has the authority to make and does make the acknowledgements, representations and agreements contained in this Announcement;it is acting as principal only in respect of the Placing or, if it is acting for any other person, it is:duly authorised to do so and has full power to make the acknowledgments, representations and agreements herein on behalf of each such person; andwill remain liable to the Company and/or Canaccord and/or Cavendish for the performance of all its obligations as a Placee in respect of the Placing (regardless of the fact that it is acting for another person);it and any person acting on its behalf is entitled to subscribe for the Placing Shares under the laws and regulations of all relevant jurisdictions that apply to it and that it has fully observed such laws and regulations, has capacity and authority and is entitled to enter into and perform its obligations as a subscriber of Placing Shares and will honour such obligations, and has obtained all such governmental and other guarantees, permits, authorizations, approvals and consents which may be required thereunder and complied with all necessary formalities to enable it to commit to this participation in the Placing and to perform its obligations in relation thereto (including, without limitation, in the case of any person on whose behalf it is acting, all necessary consents and authorities to agree to the terms set out or referred to in this Announcement) and will honour such obligations and that it has not taken any action or omitted to take any action which will or may result in the Joint Bookrunners, the Company or any of their respective directors, officers, agents, employees or advisers acting in breach of the legal or regulatory requirements of any jurisdiction in connection with the Placing;where it is subscribing for Placing Shares for one or more managed accounts, it is authorised in writing by each managed account to subscribe for the Placing Shares for each managed account;it irrevocably appoints any duly authorised officer of Canaccord or Cavendish (as applicable) as its agent for the purpose of executing and delivering to the Company and/or its registrars any documents on its behalf necessary to enable it to be registered as the holder of any of the Placing Shares and Depositary Interests for which it agrees to subscribe for upon the terms of this Announcement;the Placing Shares have not been and will not be registered or otherwise qualified and that a prospectus will not be cleared in respect of any of the Placing Shares under the securities laws or legislation of the Restricted Jurisdictions, or any state, province, territory or jurisdiction thereof;the Placing Shares may not be offered, sold, or delivered or transferred, directly or indirectly, in or into the above jurisdictions or any jurisdiction (subject to certain exceptions) in which it would be unlawful to do so and no action has been or will be taken by any of the Company, Canaccord, Cavendish or any person acting on behalf of the Company or Canaccord or Cavendish that would, or is intended to, permit a public offer of the Placing Shares in the Restricted Jurisdictions or any country or jurisdiction, or any state, province, territory or jurisdiction thereof, where any such action for that purpose is required;no action has been or will be taken by any of the Company, Canaccord, Cavendish or any person acting on behalf of the Company or Canaccord or Cavendish that would, or is intended to, permit a public offer of the Placing Shares in the United States or in any country or jurisdiction where any such action for that purpose is required;unless otherwise specifically agreed with the Joint Bookrunners, it is not and at the time the Placing Shares are subscribed for, neither it nor the beneficial owner of the Placing Shares will be, a resident of, nor have an address in, Australia, Canada, the Republic of South Africa or Japan, and it acknowledges that (i) it is not in Canada and has not received any advertisement or other offering material directed to Canada in connection with the Placing and (ii) any resale or first trade of the Placing Shares into Canada will be subject to applicable Canadian securities laws, including resale restrictions under National Instrument 45-102 - Resale of Securities.it may be asked to disclose in writing or orally to the Joint Bookrunners:if he or she is an individual, his or her nationality; orif he or she is a discretionary fund manager, the jurisdiction in which the funds are managed or owned;it is and the prospective beneficial owner of the Placing Shares is, and at the time the Placing Shares are subscribed for will be outside the United States and is acquiring the Placing Shares in an "offshore transaction" as defined in, and in accordance with, Regulation S under the US Securities Act;it has not been offered to purchase or subscribe for Placing Shares by means of any "directed selling efforts" as defined in Regulation S under the US Securities Act or by means of any "general solicitation" or "general advertising" within the meaning of Regulation D under the US Securities Act;it understands that the Placing Shares have not been, and will not be, registered under the US Securities Act and may not be offered, sold or resold, pledged or delivered in or into or from the United States except pursuant to (i) an effective registration statement under the US Securities Act; or (ii) pursuant to an exemption from the registration requirements of the US Securities Act and, in each case, in accordance with applicable United States state securities laws and regulations;it (and any account for which it is purchasing) is not acquiring the Placing Shares with a view to any offer, sale or distribution thereof within the meaning of the US Securities Act;it will not distribute, forward, transfer or otherwise transmit this Announcement or any part of it, or any other presentational or other materials concerning the Placing in or into or from the United States (including electronic copies thereof) to any person, and it has not distributed, forwarded, transferred or otherwise transmitted any such materials to any person;it understands that there may be certain consequences under United States and other tax laws resulting from an investment in the Placing and it has made such investigation and has consulted its own independent advisers or otherwise has satisfied itself concerning, without limitation, the effects of United States federal, state and local income tax laws and foreign tax laws generally;it understands that the Company has not undertaken to determine whether it will be treated as a passive foreign investment company ("PFIC") for US federal income tax purposes for the current year, or whether it is likely to be so treated for future years and none of the Company, Canaccord or Cavendish make any representation or warranty with respect to the same. Accordingly, none of the Company, Canaccord or Cavendish can provide any advice to United States investors as to whether the Company is or is not a PFIC for the current tax year, or whether it will be in future tax years. Accordingly, none of the Company, Canaccord or Cavendish undertake to provide to United States investors or shareholders any information necessary or desirable to facilitate their filing of annual information returns, and United States investors and shareholders should not assume that this information will be made available to them;if in a member state of the EEA, unless otherwise specifically agreed with the Joint Bookrunners in writing, it is a Qualified Investor;it has not offered or sold and will not offer or sell any Placing Shares to persons in the EEA except to Qualified Investors or otherwise in circumstances which have not resulted in and which will not result in an offer to the public in any member state of the EEA within the meaning of the EU Prospectus Regulation;if a financial intermediary, as that term is used in Article 7(4) of the POATR, the Placing Shares subscribed for by it in the Placing will not be acquired on a non-discretionary basis on behalf of, nor will they be acquired with a view to their offer or resale to, persons in the United Kingdom or a member state of the EEA which has implemented the EU Prospectus Regulation or POATR other than Qualified Investors, or in circumstances in which the prior consent of the Joint Bookrunners has been given to each proposed offer or resale;if in the United Kingdom, that it is a Qualified Investor (i) having professional experience in matters relating to investments who falls within the definition of "investment professionals" in Article 19(5) of the Order; or (ii) who falls within Article 49(2) (a) to (d) ("High Net Worth Companies, Unincorporated Associations, etc.") of the Order, or (iii) to whom it may otherwise lawfully be communicated;it has not offered or sold and will not offer or sell any Placing Shares to persons in the United Kingdom, except to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their business or otherwise in circumstances which have not resulted and which will not result in an offer to the public in the United Kingdom within the meaning of POATR or the Financial Services and Markets Act 2000 (the "FSMA");it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) relating to the Placing Shares in circumstances in which section 21(1) of FSMA does not require approval of the communication by an authorised person and it acknowledges and agrees that the Placing Documents have not and will not have been approved by Canaccord or Cavendish in their respective capacities as an authorised person under section 21 of the FSMA and it may not therefore be subject to the controls which would apply if it was made or approved as a financial promotion by an authorised person;it has complied and will comply with all applicable laws with respect to anything done by it or on its behalf in relation to the Placing Shares (including all applicable provisions in POATR, FSMA and MAR in respect of anything done in, from or otherwise involving, the United Kingdom);if it is a pension fund or investment company, its subscription for Placing Shares is in full compliance with applicable laws and regulations;it has complied with its obligations under the Criminal Justice Act 1993 and Articles 8, 10 and 12 of MAR and in connection with money laundering and terrorist financing under the Proceeds of Crime Act 2002 (as amended), the Terrorism Act 2000, the Terrorism Act 2006 and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and any related or similar rules, regulations or guidelines, issued, administered or enforced by any government agency having jurisdiction in respect thereof (the "Regulations") and the Money Laundering Sourcebook of the FCA and, if making payment on behalf of a third party, that satisfactory evidence has been obtained and recorded by it to verify the identity of the third party as required by the Regulations;in order to ensure compliance with the Regulations, each Joint Bookrunner (for itself and as agent on behalf of the Company) or the Company's registrars may, in their absolute discretion, require verification of its identity. Pending the provision to the Joint Bookrunners or the Company's registrars, as applicable, of evidence of identity, delivery of the Placing Shares and Depositary Interests to it in uncertificated form may be delayed at the Joint Bookrunners' or the Company's registrars', as the case may be, absolute discretion. If within a reasonable time after a request for verification of identity each Joint Bookrunner (for itself and as agent on behalf of the Company) or the Company's registrars have not received evidence satisfactory to them, the Joint Bookrunners and/or the Company may, at their absolute discretion, terminate the commitment in respect of the Placing, in which event the monies payable on acceptance of allotment will, if already paid, be returned without interest to the account of the drawee's bank from which they were originally debited;the allocation, allotment, issue and delivery to it, or the person specified by it for registration as holder, of Placing Shares and Depositary Interests will not give rise to a stamp duty or stamp duty reserve tax liability under (or at a rate determined under) any of sections 67, 70, 93 or 96 of the Finance Act 1986 (depositary receipts and clearance services) and that the Placing Shares are not being acquired in connection with arrangements to issue depositary receipts or to issue or transfer Placing Shares into a clearance service;it (and any person acting on its behalf) has the funds available to pay for the Placing Shares for which it has agreed to subscribe and acknowledges and agrees that it will make payment in respect of the Placing Shares allocated to it in accordance with this Announcement on the due time and date set out herein, failing which the relevant Placing Shares may be placed with other subscribers or sold as the Joint Bookrunners may in their sole discretion determine and without liability to such Placee, who will remain liable for any amount by which the net proceeds of such sale falls short of the product of the relevant Issue Price and the number of Placing Shares allocated to it and will be required to bear any stamp duty, stamp duty reserve tax or other taxes or duties (together with any interest, fines or penalties) imposed in any jurisdiction which may arise upon the sale of such Placee's Placing Shares;any money held in an account with a Joint Bookrunner on behalf of the Placee and/or any person acting on behalf of the Placee and/or any person acting on behalf of the Placee will not be treated as client money within the meaning of the relevant rules and regulations of the FCA made under the FSMA. Each Placee acknowledges that the money will not be subject to the protections conferred by the client money rules: as a consequence, this money will not be segregated from that Joint Bookrunner's (as applicable) money in accordance with the client money rules and will be held by it under a banking relationship and not as trustee;its allocation (if any) of Placing Shares will represent a maximum number of Placing Shares which it will be entitled, and required, to subscribe for, and that the Joint Bookrunners or the Company may call upon it to subscribe for a lower number of Placing Shares (if any), but in no event in aggregate more than the aforementioned maximum;neither Joint Bookrunner nor any of their respective affiliates, nor any person acting on behalf of any of them, is making any recommendations to it, advising it regarding the suitability of any transactions it may enter into in connection with the Placing;if it has received any 'inside information' (for the purposes of MAR and section 56 of the Criminal Justice Act 1993) in relation to the Company and its securities in advance of the Placing, it confirms that it has received such information within the market soundings regime provided for in article 11 of MAR and associated delegated regulations and it has not:used that inside information to acquire or dispose of securities of the Company or financial instruments related thereto or cancel or amend an order concerning the Company's securities or any such financial instruments;used that inside information to encourage, require, recommend or induce another person to deal in the securities of the Company or financial instruments related thereto or to cancel or amend an order concerning the Company's securities or such financial instruments; ordisclosed such information to any person, prior to the information being made publicly available;if in the United Kingdom, unless otherwise agreed by the Joint Bookrunners, it is a "professional client" or an "eligible counterparty" within the meaning of Chapter 3 of the FCA Handbook Conduct of Business Sourcebook ("COBS") and it is acquiring Placing Shares for investment only and not with a view to resale or distribution;it undertakes to the Joint Bookrunners at the time of making its commitment to acquire Placing Shares that it will confirm in writing to a Bank in the form of confirmation sent by that Joint Bookrunner to Placees the number of Placing Shares it intends to acquire;the rights and remedies of the Company, Canaccord and Cavendish under the terms and conditions in this Announcement are in addition to any rights and remedies which would otherwise be available to each of them and the exercise or partial exercise of one will not prevent the exercise of others;acknowledges that the Subscription, Life Offering and WRAP Offer do not in any way form part of the Placing, but the Placing is conditional on the Subscription, however, the Placing is not conditional on the WRAP Offer, but that the WRAP Offer is conditional on the Placing; andthese terms and conditions of the Placing and any agreements entered into by it pursuant to the terms and conditions of the Placing, and all non-contractual or other obligations arising out of or in connection with them, shall be governed by and construed in accordance with the laws of England and it submits (on behalf of itself and on behalf of any person on whose behalf it is acting) to the exclusive jurisdiction of the English courts as regards any claim, dispute or matter arising out of any such contract (including any dispute regarding the existence, validity or termination of such contract or relating to any non-contractual or other obligation arising out of or in connection with such contract), except that enforcement proceedings in respect of the obligation to make payment for the Placing Shares (together with any interest chargeable thereon) may be taken by either the Company or Canaccord or Cavendish in any jurisdiction in which the relevant Placee is incorporated or in which any of its securities have a quotation on a recognized stock exchange.The foregoing representations, warranties, confirmations, acknowledgements, agreements and undertakings are given for the benefit of the Company, Canaccord and Cavendish and are irrevocable. Canaccord, Cavendish the Company and their respective affiliates and others will rely upon the truth and accuracy of the foregoing representations, warranties, confirmations, acknowledgements, agreements and undertakings. Each prospective Placee, and any person acting on behalf of such Placee, irrevocably authorizes the Company, Canaccord and Cavendish to produce this Announcement, pursuant to, in connection with, or as may be required by any applicable law or regulation, administrative or legal proceeding or official inquiry with respect to the matters set forth herein.By participating in the Placing, each Placee (and any person acting on such Placee's behalf) agrees to indemnify on an after tax basis and hold the Company, Canaccord, Cavendish and their respective affiliates, agents, directors, officers and employees harmless from any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, acknowledgements, agreements and undertakings given by the Placee (and any person acting on such Placee's behalf) in this Announcement or incurred by Canaccord, Cavendish, the Company or any of their respective affiliates, agents, directors, officers or employees arising from the performance of the Placees' obligations as set out in this Announcement, and further agrees that the provisions of this Announcement shall survive after completion of the Placing.Where the Placees are acting in its capacity as a discretionary investment manager on behalf of its underlying clients, then it is the discretionary investment manager that is to be regarded as the Placee for the purpose of this Announcement and not the underlying client. For the avoidance of doubt, the representations and warranties given are to be taken as made on behalf of the Placee itself and not their underlying client.TaxationAny arrangements to issue or transfer the Placing Shares into a depositary receipts system or a clearance service or to hold the Placing Shares as agent or nominee of a person to whom a depositary receipt may be issued or who will hold the Placing Shares in a clearance service, or any arrangements subsequently to transfer the Placing Shares, may give rise to stamp duty and/or stamp duty reserve tax, for which neither the Company nor the Joint Bookrunners will be responsible and the Placees shall indemnify the Company and the Joint Bookrunners on an after-tax basis for any stamp duty or stamp duty reserve tax or other similar taxes or duties (together with interest, fines and penalties) in any jurisdiction paid by the Company or any Joint Bookrunner in respect of any such arrangement and/or dealing. If this is the case, each Placee should seek its own advice and notify the Joint Bookrunners accordingly. Placees are advised to consult with their own advisers regarding the tax aspects of the subscription for Placing Shares.The Company and the Joint Bookrunners are not liable to bear any taxes that arise on a sale of Placing Shares subsequent to their acquisition by Placees, including any taxes arising under the laws of the United Kingdom or any country in the EEA. Each prospective Placee should, therefore, take its own advice as to whether any such tax liability arises and notify the Joint Bookrunners and the Company accordingly. Furthermore, each prospective Placee agrees to indemnify on an after-tax basis and hold the Joint Bookrunners and/or the Company and their respective affiliates harmless from any and all interest, fines or penalties in relation to stamp duty, stamp duty reserve tax and all other similar duties or taxes in any jurisdiction to the extent that such interest, fines or penalties arise from the unreasonable default or delay of that Placee or its agent.In addition, Placees should note that they will be liable for any stamp duty and all other stamp, issue, securities, transfer, registration, documentary or other duties or taxes (including any interest, fines or penalties relating thereto) payable, whether inside or outside the UK, by them or any other person on the subscription, acquisition, transfer or sale by them of any Placing Shares or the agreement by them to subscribe for, acquire, transfer or sell any Placing Shares.APPENDIX 2- DEFINITIONSThe following definitions apply throughout this Announcement unless the context requires otherwise:Additional Tranche 1 Subscriptionthe subscription by Purebond for such additional Common Shares at the Issue Price as would give rise to proceeds equal to the Basic Subscription Shortfall, provided that, after giving effect to such subscription, Purebond's beneficial ownership of Common Shares does not exceed 19.99 percent of the issued share capital of the Company prior to the General Meeting and the issuance complies with applicable TSX requirementsAdditional Tranche 1 Subscription Sharessuch additional Common Shares (if any) subscribed for by Purebond at the Issue Price, as are required to give rise to proceeds equal to the Basic Subscription Shortfall, and which, together with the Basic Tranche 1 Subscription Shares, comprise the Tranche 1 Subscription SharesAdmissionadmission of the new Touchstone Shares to the TSX and the AIM market of the London Stock Exchange as applicableAIMAIM market of the London Stock ExchangeAnnouncementthis announcement, including the attached Appendix 1 and Appendix 2 and the terms and conditions set out hereinApplicationsrefers to, together, applications made to the London Stock Exchange and to the TSX for admission to trading of the Placing Shares on AIM and TSX, respectivelyBasic Subscriptionthe subscription by Purebond for a number of Common Shares equal to Purebond's pro rata portion of the Basic Tranche 1 Subscription SharesBasic Subscription Shortfallthe amount by which the aggregate proceeds of (i) the Basic Subscription, (ii) the Placing (iii) the WRAP Offer and (iv) the LIFE Offering would otherwise be less than US$10,000,000.Basic Tranche 1 Subscription Sharesthe Common Shares subscribed for by Purebond equal to its pro rata portion of the Placing Shares, the WRAP Offer Shares and the LIFE Offering SharesBookbuildan accelerated bookbuild process which will commence immediately following this Announcement and will be subject to the terms and conditions set out in Appendix 1 to this Announcement.CanaccordCanaccord Genuity Limited, acting as Nominated Adviser and Lead BookrunnerCavendishCavendish Capital Markets Limited, acting as a Joint BookrunnerCOBSthe FCA Handbook Conduct of Business SourcebookCommon Sharesthe common shares in the capital of Touchstone of no-par value as constituted on the date hereofCompanyTouchstone Exploration Inc.CRESTthe system for the paperless settlement of trades in securities and the holding of uncertificated securities operated by EuroclearDebt Securitiesthe unsecured non-convertible debt securities of the Company (a debenture) issued to Purebond in connection with the Fundraise, not issued at the Issue PriceDepositary Intereststhe dematerialised depositary interests representing the Placing SharesEEAthe European Economic AreaEU Prospectus RegulationArticle 2(e) of the Prospectus Regulation (EU) 2017/1129EU Target Market Assessmentproduct approval process, which has determined that the securities the subject of the Fundraise are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID IIFCAthe Financial Conduct Authority in the United KingdomFirst Admissionthe admission of the First Tranche Shares to trading on the AIM market and the TSX in advance of the remaining Offer Shares to be issued to Purebond under the FundraiseFirst Trancheissuance of such number of the First Tranche Shares to be admitted to trading on AIM and the TSX in advance of the remaining Offer Shares to be issued to Purebond under the FundraiseFirst Tranche Sharessuch number of Common Shares as may be permitted to be issued without shareholder approval under applicable TSX requirements, and for those shares to be admitted to trading on AIM and the TSX in advance of the remaining Offer Shares to be issued to PurebondFirst Tranche Subscription Sharesthe Subscription Shares issued by Touchstone to Purebond pursuant to the Subscription Agreement as part of the First Tranche, in such number that, prior to obtaining shareholder approval at the General Meeting, Purebond's beneficial ownership of Common Shares does not exceed 19.99 percent of the Company's total issued share capital, with any remaining commitment to be satisfied through the issuance of Debt SecuritiesFSMAthe Financial Services and Markets Act 2000FOFIfuture-oriented financial information and financial outlook informationForward-looking Statementsrefers to, together, certain forward-looking statements and information within the meaning of applicable securities lawsFundraisean integrated financing to raise gross proceeds of between US$10 million and US$15 million (between approximately £7.4 million / C$13.9 million and £11.2 million / C$20.8 million), of which US$10 million is expected to be provided by Touchstone's largest existing shareholder, Purebond LimitedGeneral Meetinga general and special meeting of the shareholders of the Touchstone to be held on or about July 23, 2026Indemnified Taxesany liability to stamp duty or stamp duty reserve tax or other similar taxes or duties imposed in any jurisdiction (including interest and penalties relating thereto)Issue Pricethe price of the issue of each new common shares, in the amount of 7 pence, equivalent to approximately C$0.13Joint Bookrunnersrefers to, together, Canaccord Genuity Limited, acting as Nominated Adviser and Lead Bookrunner, and Cavendish Capital Markets Limited acting as a Joint Bookrunner in connection with the PlacingLIFEthe Listed Issuer Financing Exemption under applicable Canadian securities lawLIFE Offeringa non-pre-emptive private placement of new the LIFE Offering Shares at the Issue Price to certain investors in Canada pursuant to the LIFE (under applicable Canadian securities laws)LIFE Offering Sharesnew Common Shares placed pursuant to the LIFE OfferingLondon Stock ExchangeLondon Stock Exchange plcLong Stop Date8:00 a.m. (London time) on June 17, 2026, being the latest date by which Admission must occur under the Placing Agreement, or such later time or date as may be agreed by the Joint Bookrunners and the CompanyMiFID IIEU Directive 2014/65/EU on markets in financial instrumentsMiFID II Product Governance Requirementsrefers to, together, the EU Directive 2014/65/EU on markets in financial instruments, as amended, (Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II and local implementing measuresNI 51-101National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities adopted by the Canadian Securities AdministratorsOffering Documentthe offering document prepared by the Company in connection with the LIFE Offering in Canada, available under the Company's profile at www.sedarplus.ca and on the Company's website at www.touchstoneexploration.com, which prospective investors in Canada should read before making an investment decisionOffer Sharesrefers to, together, the WRAP Offer Shares, the Placing Shares, the LIFE Offering Shares and the Subscription SharesPFICa passive foreign investment companyPlacingthe non-pre-emptive placing of the Placing Shares at the Issue Price to certain institutional and other investors, to be carried out by way of an accelerated bookbuildPlacing Agreementan agreement between the Joint Bookrunners and the CompanyPlacing Documentsrefers to, together, this Announcement and the Result of Placing AnnouncementPlacing SharesNew Common Shares issued in the PlacingPOATRPublic Offers and Admissions to Trading Regulations 2024Publicly Available Informationany information publicly announced through an RIS by or on behalf of Touchstone on or prior to the date of this AnnouncementPurebondPurebond LimitedRegulationsthe Criminal Justice Act 1993, Articles 8, 10 and 12 of MAR, the Proceeds of Crime Act 2002 (as amended), the Terrorism Act 2000, the Terrorism Act 2006, the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, and any related or similar rules, regulations or guidelines, issued, administered or enforced by any government agency having jurisdiction in respect thereofRelevant Personspersons to whom this Announcement is addressed, that are qualified investors within the meaning of paragraph 15 of Schedule 1 of the Public Offers and Admissions to Trading Regulations 2024 and who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 Order 2005, as amended (ii) are persons who are high net worth entities falling within Article 49(2)(a) to (d) of the Order, and (iii) to persons to whom it may otherwise be lawful to communicate it toRestricted Jurisdictionany jurisdiction in which release publication or distribution of this Announcement would be unlawful including the United Sates, Australia, New Zealand, Japan and the Republic of South AfricaRestricted Periodthe time between the date of the Placing Agreement and the three months after Admission, whereby Touchstone will not, without the prior written consent of the Joint Bookrunners, directly or indirectly offer, issue, sell or contract to sell, issue options in respect of or otherwise dispose of or announce an offering or issue of any Common Shares (or any interest therein or in respect thereof) or any other securities exchangeable for or convertible into, or substantially similar to, Common Shares or enter into any transaction with the same economic effect as, or agree to do, any of the foregoing (whether or not legally or contractually obliged to do so)Result of Placing Announcementthe announcement confirming the close of the Placing and giving details of the results of the PlacingRISRegulatory Information Service, any information service authorised from time to time by the FCA for the purpose of disseminating regulatory announcementsQualified Investorspersons in such member states who are qualified investors within the meaning of Article 2(e) of the Prospectus Regulation (EU) 2017/1129 (as amended) including any implementing measure in any member stateSecond Admissionon or about 28 July 2026 when Common Shares as part of the Second Tranche are expected to be admitted to trading on AIM and the TSX as applicableSecond Tranchesubject to shareholder approval and other applicable approvals, the redirection of the repayment amount into a subscription for Common Shares one (1) Business Day following the Company's receipt of shareholder approval, or otherwise as described in the repayment and subscription agreement between the Company and Purebond.Second Tranche Sharesthe Common Shares issued to Purebond pursuant to the Second Tranche, following the repayment of any Debt Securities and the redirection of such repayment amount into a subscription for Common Shares, subject to shareholder approvalSecurities ActThe US Securities Act of 1933Subscriptionthe aggregate investment of up to US$10,000,000 by Purebond into the Company pursuant to the Subscription Agreement, comprising: (i) the Tranche 1 Subscription, being a subscription for Common Shares at the Issue Price (including the Basic Subscription and, if applicable, the Additional Tranche 1 Subscription); and (ii) to the extent of any Tranche 1 Subscription Shortfall, the Tranche 2 Subscription, being a subscription for Debt Securities of the Company with an issue price equal to such shortfallSubscription Agreementrefers to, together, the subscription agreement entered into between the Company and Purebond dated June 4, 2026, subject to clawback to satisfy valid applications pursuant to the Placing, the LIFE Offering and the related repayment and subscription agreement between the Company and Purebond and the Debt SecuritiesSubscription Sharesnew Common Shares purchased by Purebond pursuant to the Subscription AgreementTouchstoneTouchstone Exploration Inc.Tranche 1 Subscription Sharesrefers to, together, the Basic Tranche 1 Subscription Shares and, if applicable, the Additional Tranche 1 Subscription Shares issued at the Issue Price, subscribed to by PurebondTranche 1 Subscription Shortfallthe amount by which the aggregate proceeds of (i) the Tranche 1 Subscription, (ii) the Placing and (iii) the LIFE Offering is less than US$10,000,000Tranche 2 Subscriptionthe subscription for Debt Securities of the Company with an issue price that would give rise to proceeds equal to the Tranche 1 Subscription Shortfall, and which, together with the Tranche 1 Subscription, forms the SubscriptionTSXThe Toronto Stock ExchangeUK Product Governance Requirementsthe product governance requirements contained within chapter 3 of the FCA Handbook Product Intervention and Product Governance SourcebookUK Target Market Assessmenta product approval process, which has determined that such securities are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in chapter 3 of the FCA Handbook Conduct of Business Sourcebook; and (ii) eligible for distribution through all permitted distribution channelsUnited Statesthe United States of America, its territories and possessions, any state of the United States of America, the District of Columbia and all other areas subject to its jurisdiction and any political sub-division thereofUS Securities ActThe United States Securities Act of 1933WRAPThe Winterflood Retail Access PlatformWRAP Offera non-pre-emptive retail offer through WRAP to raise gross proceeds of up to £0.74 million (US$1.0 million / C$1.4 million)WRAP Offer Sharesthe new Common Shares issued at the issued price pursuant to the WRAP OfferSOURCE: Touchstone Exploration, Inc.View the original press release on ACCESS NewswireOriginal: Touchstone Exploration Inc. Proposed Fundraise of US$10 Million to US$15 Million

Suspension de la négociation par l'Organisme canadien de réglementation des investissements - TXPJune 4, 2026 12:01 PM
PR Newswire (Canada) TORONTO, le 4 juin 2026 /CNW/ - L'OCRI a suspendu la négociation des titres suivants :Société : Touchstone Exploration Inc.Symbole TSX : TXP Les titres : OuiMotif : Nouvelle en attenteHeure de la suspension (HE) : 11 h 40L'OCRI peut prendre la décision de suspendre (ou d'arrêter) temporairement les opérations à l'égard d'un titre d'une société cotée en bourse. Les arrêts des opérations sont mis en oeuvre afin d'assurer le bon fonctionnement d'un marché équitable. L'OCRI est l'organisme d'autoréglementation national qui surveille l'ensemble des courtiers en placement et l'ensemble des opérations effectuées sur les marchés des titres de capitaux propres et les marchés des titres de créance au Canada.SOURCE L’Organisme canadien de règlementation des investissements (OCRI) - Arrêts/Reprises Original: Suspension de la négociation par l'Organisme canadien de réglementation des investissements - TXP

Canadian Investment Regulatory Organization Trading Halt - TXPJune 4, 2026 11:57 AM
PR Newswire (Canada) TORONTO, June 4, 2026 /CNW/ - The following issues have been halted by CIRO:Company: Touchstone Exploration Inc.TSX Symbol: TXP All Issues: YesReason: Pending News Halt Time (ET): 11:40 AMCIRO can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. CIRO is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.SOURCE Canadian Investment Regulatory Organization (CIRO) – Halts/Resumptions Original: Canadian Investment Regulatory Organization Trading Halt - TXP

Touchstone Exploration Provides An Operational UpdateMay 28, 2026 2:00 AM
ACCESS NewswireCALGARY, AB / ACCESS Newswire / May 28, 2026 / Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX, LSE:TXP) provides an update on its recent operational activities in the Republic of Trinidad and Tobago.HighlightsOil production growth: The FR-1835 and FR-1836 development wells on the WD-8 block were successfully completed and placed on production in mid-May 2026. Since startup, the wells have collectively averaged approximately 175 bbls/d of medium-gravity crude oil, performing in line with expectations.Optimized gas pricing outlook: The Company has been advised that Atlantic LNG Train 4 is undergoing a scheduled 54-day maintenance shutdown that commenced on May 26, 2026. During this period, Central block gas volumes will be redirected to Train 2/3 and the domestic market, which is anticipated to enhance our realized natural gas pricing.Progress at Cascadura: Mechanical and electrical installation of the Cascadura facility booster compressor continues to progress on schedule, with commissioning expected to commence in June 2026.Carapal Ridge 3 production optimization: Touchstone is preparing for a coiled tubing cleanout and acid stimulation program at the Carapal Ridge 3 ("CR-3") well to address an inflow restriction and maximize production performance.Paul R. Baay, President and Chief Executive Officer, commented:"Operationally, our focus remains on efficiently converting reserves into near-term cash flow. The addition of two development wells on our legacy WD-8 oil block provides immediate, stable cash flow that capitalizes on current strong global crude oil prices. Crucially, these wells were funded via our strategic exchange of the Fyzabad asset last year, which produced approximately 49 barrels per day in 2025, representing an excellent allocation of capital.Simultaneously, we are on the verge of expanding our natural gas throughput capacity at Cascadura as compressor installation advances toward a June 2026 commissioning. At the Central field, the CR-3 well is awaiting coiled tubing services to commence a well intervention to unlock its full productivity. We continue to prioritize disciplined capital allocation, focusing on high-return well and facility optimizations."Operational UpdateWD-8 Block DrillingFollowing the conclusion of the WD-8 drilling campaign, the FR-1835 and FR-1836 development wells were completed and brought online in mid-May. Combined production from the two wells has averaged a field estimated 175 barrels per day of medium-gravity crude oil, performing in line with internal expectations. Field operations teams are currently optimizing production flow rates.Turnkey drilling costs for both wells were funded by the drilling operator under the terms of the strategic asset exchange agreement executed by the Company in 2025.Central Block Natural Gas MarketingAtlantic LNG Train 4 is undergoing planned maintenance from May 26 through July 19, 2026. Additionally, the main transportation pipeline serving Atlantic LNG will be offline for planned maintenance between June 15 and June 29, 2026.During these scheduled infrastructure outages, Touchstone's natural gas volumes from the Central block are being redirected to Atlantic LNG Train 2/3 or the domestic market. The Company expects this temporary diversion to positively impact its net realized gas price. Based on current benchmark strip pricing, the pricing formula allocated to Train 2/3 is structurally higher than Train 4, while domestic industrial demand remains exceptionally strong, driven by robust local petrochemical and fertilizer (methanol and ammonia) production.Cascadura Booster CompressorAt the Cascadura facility on the Ortoire block, installation of the new booster compressor is advancing rapidly across both mechanical and electrical work streams, with facility commissioning remaining on schedule to begin in June 2026.The compressor is designed to lower wellhead backpressure, mitigating regional pipeline capacity limitations and allowing the wells to flow more freely. This project is expected to enhance overall production efficiency and facility reliability.CR-3 Well InterventionSince commencing first production to the facility, the CR-3 well has delivered stable flowing pressures and gross field estimated production rates of approximately 2.2 million cubic feet of natural gas per day and 14 barrels of condensate per day, with no prior interventions performed.As previously announced, ongoing reservoir performance analysis indicates a localized inflow restriction within the formation, likely caused by residual drilling and completion fluids. To unlock the well's full productivity, Touchstone has designed a targeted coiled tubing cleanout and acid stimulation program.Operations are currently contingent on the availability of a local coiled tubing unit. The sole local service provider capable of executing this program is currently addressing mechanical issues with its unit and sourcing replacement parts. Given the favourable gas pricing associated with the Train 4 diversion, Touchstone is evaluating whether it is commercially advantageous to defer the CR-3 shut-in and optimization program until the Atlantic LNG maintenance window concludes.Touchstone Exploration Inc.Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487Brian Hollingshead, EVP Engineering and Business DevelopmentAdvisory Regarding Forward-looking StatementsThe information provided in this news release contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends", and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this news release speak only as of the date hereof and are expressly qualified by this cautionary statement.Specifically, this news release includes, but is not limited to, forward-looking statements relating to: the Company's business plans, strategies, priorities and development plans; anticipated developmental drilling and facility upgrade activities, including locations, the timing thereof and related production and cash flows therefrom; field estimated production rates; the expected timing and potential success of the coiled tubing cleanout and acid stimulation program at the CR-3 well and its impact on reservoir inflow and production productivity; the anticipated timing for the completion, commissioning, and startup of the Cascadura compressor, including the project's impact on wellhead backpressure, overall production rates and operational stability; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund current obligations and future capital expenditures. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2025 Annual Information Form dated March 30, 2026 which is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.SOURCE: Touchstone Exploration, Inc.View the original press release on ACCESS NewswireOriginal: Touchstone Exploration Provides An Operational Update

Touchstone Exploration Reports First Quarter 2026 Results and Operational UpdateMay 14, 2026 2:00 AM
ACCESS NewswireCALGARY, AB / ACCESS Newswire / May 14, 2026 / Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX:TXP)(LSE:TXP) reports its operating and condensed financial results for the three months ended March 31, 2026 and provides an operational update.Selected financial information is outlined below and should be read in conjunction with Touchstone's March 31, 2026 unaudited interim condensed consolidated financial statements and related Management's discussion and analysis, both of which are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). Unless otherwise stated, all financial amounts presented herein are in United States dollars, and all production volumes disclosed herein are sales volumes based on Company working interest before royalty burdens.First Quarter 2026 Financial and Operating HighlightsProduction growth: Average daily production increased 8% year-over-year to 4,657 boe/d, as production from the Central field (2,131 boe/d) successfully mitigated natural declines in legacy assets. Relative to the preceding quarter, average quarterly production decreased from 4,877 boe/d, primarily due to natural declines in mature crude oil and Ortoire natural gas volumes.Revenue and realized pricing: Petroleum and natural gas sales totaled $12.5 million, a 14% increase from the $11.0 million recorded in the previous quarter. This was driven by an 18% increase in realized natural gas prices and a 25% recovery in realized crude oil pricing, with March 2026 crude oil volumes averaging $86.58 per barrel.Crude oil sales: $5.68 million from average production of 929 bbls/d at a realized price of $67.94 per barrel.NGL sales: $1.50 million from average production of 422 bbls/d at a realized price of $39.38 per barrel.Natural gas sales: $5.36 million from average production of 19.84 MMcf/d (3,306 boe/d) at a realized price of $3.00 per Mcf.Operating netback: Realized an operating netback of $13.73 per boe, a 46% improvement over the $9.41 per boe recorded in the preceding quarter. This expansion reflected higher commodity pricing and stable royalty structures, which more than offset the increased operating cost base.Funds flow from operations: Increased to $1.85 million from $0.62 million in the previous quarter, primarily driven by a $1.54 million increase in operating netbacks.Net income: Recorded a net loss of $2.38 million ($0.01 per basic share), a normalization from $13.62 million in net income reported in the fourth quarter of 2025, which was skewed by $14.53 million in one-time non-cash gains.Capital investments: Expenditures were focused on high-impact projects, including the FR-1835 crude oil development well, tie-in of the CR-3 natural gas development well, and the Cascadura compression project, totalling $3.22 million for the quarter.Financial position: Ended the period with a net debt position of $76.07 million.Post Period-end HighlightsStrategic infrastructure: Successfully delivered the Cascadura compressor to the facility in April, with commissioning expected in June 2026 to unlock further production capacity.WD-8 block drilling: Completed drilling the FR-1836 well ahead of schedule, with the well encountering an estimated 227 feet of net hydrocarbon pay.Production Update: In April 2026, the Company produced estimated average net production volumes of 4,677 boe/d, including average net natural gas sales volumes of 19.3 MMcf/d (3,221 boe/d) and average net crude oil and natural gas liquid sales volumes of 1,456 bbls/d.Q1 2026 Financial and Operating Results Overview
Three months ended
March 31,2026 December 31, 2025 March 31,2025 Operational






Average daily production


Crude oil(1) (bbls/d) 929 996 1,162 NGLs(1) (bbls/d) 422 413 39 Crude oil and liquids(1)(bbls/d) 1,351 1,409 1,201 Natural gas(1) (Mcf/d) 19,838 20,805 18,698 Average daily production (boe/d)(2) 4,657 4,877 4,317
Production mix (% of production) Crude oil and liquids(1) 29 29 28 Natural gas(1) 71 71 72
Average realized prices(3) Crude oil(1) ($/bbl) 67.94 54.57 63.86 NGLs(1) ($/bbl) 39.38 30.30 64.05 Crude oil and liquids(1)($/bbl) 59.02 47.46 63.87 Natural gas(1) ($/Mcf) 3.00 2.54 2.50 Realized commodity price ($/boe)(2) 29.92 24.53 28.60
Operating netback ($/boe)(2) Realized commodity price(3) 29.92 24.53 28.60 Royalty expense(3) (7.31) (7.15) (7.25)Operating expense(3) (8.88) (7.97) (5.52)Operating netback(3) 13.73 9.41 15.83
Financial ($000's except per share amounts)
Petroleum and natural gas sales 12,543 11,001 11,113
Cash from operating activities 4,787 9,903 5,611
Funds flow from operations 1,848 623 2,580
Net (loss) income (2,376) 13,621 41 Per share - basic and diluted (0.01) 0.04 0.00
Capital expenditures(3) 3,224 7,443 6,673
Principal balance of bank debt 55,625 57,750 33,500 Principal balance of convertible debenture 12,500 12,500 - Net debt(3) 76,072 72,890 33,330
Share Information (000's)
Weighted average shares outstanding Basic and diluted 324,734 304,674 236,461 Outstanding shares - end of period 324,734 324,734 236,461
Notes:Refer to "Advisories - Product Type Disclosures" for further information.In the table above and elsewhere in this news release, references to "boe" mean barrels of oil equivalent that are calculated using the energy equivalent conversion method. Refer to "Advisories - Oil and Natural Gas Measures" for further information.Specified or supplementary financial measure. Refer to "Advisories - Non-GAAP and Other Financial Measures" for further information.Operational UpdateCarapal Ridge 3 (CR-3)Since commencing production, the CR-3 well has delivered stable gross production rates of approximately 2.2 MMcf/d of natural gas and 14 bbls/d of condensate. Based on current well performance and flowing parameters, the well appears to be experiencing an inflow restriction. To optimize performance, the Company is awaiting the availability of equipment to complete a coiled tubing cleanout and acid stimulation aimed at enhancing reservoir inflow and well productivity.Cascadura InfrastructureThe Cascadura compressor arrived in Trinidad on April 23, 2026. Installation is progressing, with commissioning targeted to commence in June 2026. The compressor is intended to alleviate production constraints associated with elevated sales pipeline pressures and is expected to enhance production rates and improve operational stability at the facility.Oil Block DrillingFollowing the successful drilling of FR-1835 on the WD-8 block in March 2026, drilling operations on FR-1836 commenced on March 26, 2026, with total depth reached on April 7, 2026. Wireline log analysis indicates approximately 227 feet of net hydrocarbon pay. Both wells were drilled ahead of schedule with turnkey drilling costs funded by the drilling operator. Completion operations are currently underway, and both wells are expected to be brought onstream imminently.Liquidity and RecapitalizationAs at March 31, 2026, the Company had a working capital deficit of $22.2 million (excluding the convertible debenture maturing in 2028). Due to the current debt structure and projected 2026 covenant levels, the Company's March 31, 2026 unaudited interim condensed financial statements include a note regarding the existence of material uncertainties over its ability to continue as a going concern.In the absence of mitigating actions, the Company's current cash resources and forecast cash flows from operations may not be sufficient to fund expected operating and development expenditures and scheduled bank debt repayments over the next twelve months.Touchstone is actively executing a strategic recapitalization plan to address near-term liquidity and ensure the Company is funded for its high-growth development program, which includes:Debt restructuring: Constructive and ongoing discussions with our lender regarding loan amendments and waivers for the currently projected annual 2026 covenant breaches. The Company has a history of proactive engagement and receiving covenant waivers from its lender.Value-added tax recovery: Continuing engagement with the Trinidad and Tobago Government to collect outstanding value-added tax receivables (approximately $10.1 million outstanding as at March 31, 2026).Operational cash-flow: Anticipated production growth as new wells and the compression project come online in 2026 and benefitting from strengthening commodity pricing.Equity initiatives: Evaluating strategic opportunities to strengthen the balance sheet and support future work commitments.Touchstone Exploration Inc.Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487
Scott Budau, Chief Financial Officer
Brian Hollingshead, EVP Engineering and Business DevelopmentAdvisoriesForward-looking StatementsThe information provided in this news release contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends", and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this news release speak only as of the date hereof and are expressly qualified by this cautionary statement.Specifically, this news release includes, but is not limited to, forward-looking statements relating to: the Company's business plans, strategies, priorities and development plans; anticipated developmental drilling and facility upgrade activities, including locations, the timing thereof and related production and cash flows therefrom; field estimated production rates; the expected timing and potential success of the coiled tubing cleanout and acid stimulation program at the CR-3 well and its impact on reservoir inflow and productivity; the anticipated timing for the completion, commissioning, and startup of the Cascadura compressor, including the project's impact on wellhead backpressure and overall production rates and operational stability; the estimated hydrocarbon net pay of the FR-1836 well based on internal interpretations of wireline logs, which may not be indicative of ultimate production or reserves; the anticipated timing for bringing wells FR-1835 and FR-1836 onstream; the Company's expectation of executing a recapitalization plan; the Company's ability to amend its current loan agreement and/or obtain future waivers for projected financial covenant breaches; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund current obligations and future capital expenditures. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2025 Annual Information Form dated March 30, 2026 which is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.Non-GAAP and Other Financial MeasuresThis news release references various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under Canadian Generally Accepted Accounting Principles ("GAAP") and do not have a standardized meaning prescribed by IFRS Accounting Standards as Issued by the International Accounting Standards Board ("IFRS") and therefore may not be comparable to similar financial measures disclosed by other issuers. Readers are cautioned that the non-GAAP financial measures referred to herein should not be construed as alternatives to, or more meaningful than, measures prescribed by IFRS, and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are commonly used in the oil and natural gas industry and by the Company to provide shareholders and potential investors with additional information regarding the Company's performance. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures disclosed herein.Operating netbackTouchstone uses operating netback as a key performance indicator of field results. The Company considers operating netback to be a key measure as it demonstrates Touchstone's profitability relative to current commodity prices and assists Management and investors with evaluating operating results on a historical basis. Operating netback is a non-GAAP financial measure calculated by deducting royalty and operating expenses from petroleum and natural gas sales. The most directly comparable financial measure to operating netback disclosed in the Company's consolidated financial statements is petroleum and natural gas revenue net of royalties. Operating netback per boe is a non-GAAP ratio calculated by dividing the operating netback by total production volumes for the period. Presenting operating netback on a per boe basis allows Management to better analyze performance against prior periods on a comparable basis.Capital expendituresCapital expenditures is a non-GAAP financial measure that is calculated as the sum of exploration and evaluation asset expenditures and property, plant and equipment expenditures included in the Company's consolidated statements of cash flows and is most directly comparable to cash used in investing activities. Touchstone considers capital expenditures to be a useful measure of its investment in its existing asset base.Working capital and net debtWorking capital and net debt are capital management measures used by Management to monitor the Company's capital structure to evaluate its true debt and liquidity position and to manage capital and liquidity risk.Working capital is calculated as current assets minus current liabilities as presented in the applicable consolidated balance sheet, excluding the carrying value of the convertible debenture. Management excludes the carrying value of the convertible debenture from working capital given the instrument has a maturity date in 2028.Net debt is determined by adding the Company's working capital surplus or deficit to the principal (undiscounted) balance of non-current bank debt and the principal (undiscounted) balance of the convertible debenture. Net debt is most directly comparable to total liabilities as disclosed in the Company's consolidated balance sheets.Supplementary Financial MeasuresRealized commodity price per boe - is comprised of petroleum and natural gas sales as determined in accordance with IFRS, divided by the Company's total production volumes for the period.Realized crude oil sales per barrel, realized NGL sales per barrel and realized natural gas sales per boe - are comprised of sales from the respective product type as determined in accordance with IFRS, divided by the Company's total production volumes of the respective product type for the period. Crude oil sales, NGL sales and natural gas sales are components of petroleum and natural gas sales as disclosed on the consolidated statements of comprehensive income.Realized crude oil and liquids sales per barrel - is comprised of the sum of crude oil and NGL product sales as determined in accordance with IFRS, divided by the sum of the Company's total crude oil and NGL production volumes for the period. Crude oil and NGL sales are components of petroleum and natural gas sales.Royalty expense per boe - is comprised of royalty expense as determined in accordance with IFRS, divided by the Company's total production volumes for the period.For further information, please refer to the "Advisories - Non-GAAP Financial Measures" section of the Company's most recent Management's discussion and analysis for the three months ended March 31, 2026 accompanying the March 31, 2026 unaudited interim condensed consolidated financial statements, both of which are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). Touchstone's Management's discussion and analysis is incorporated by reference herein and includes further discussion of the purpose and composition of the specified non-GAAP financial measures consistently used by the Company and detailed reconciliations to the most directly comparable GAAP measures.Oil and Natural Gas MeasuresTo provide a single unit of production for analytical purposes, natural gas production has been converted mathematically to barrels of oil equivalent. The Company uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalent conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and may be misleading, particularly if used in isolation, as the value ratio between crude oil and natural gas based on current commodity prices may differ significantly from the 6:1 energy equivalency ratio.Product Type DisclosuresThis news release includes references to crude oil, NGLs, crude oil and liquids, natural gas average daily production volumes. Under NI 51-101, disclosure of production volumes should include segmentation by product type as defined in the instrument. In this news release, references to "crude oil" refer to light and medium crude oil and heavy crude oil; references to "NGLs" refer to condensate and propane; and references to "natural gas" refer to conventional natural gas, all as defined in the instrument. References to "crude oil and liquids" include crude oil and NGLs.The Company's estimated average net production volumes for April 2026 consist of the following product types as defined in NI 51-101 using a conversion of 6 Mcf to 1 boe where applicable.Period Light and
Medium
Crude Oil
(bbls/d) Condensate
(bbls/d) Other NGLs
(bbls/d) Conventional
Natural Gas
(Mcf/d) Total Oil
Equivalent
(boe/d)





April 2026 981 158 317 19,325 4,677
For further information regarding specific product disclosures in accordance with NI 51-101, including first quarter 2026 and 2025 average daily production information by product type, please refer to the "Advisories - Product Type Disclosures" section of the Company's most recent Management's discussion and analysis for the three months ended March 31, 2026 accompanying the March 31, 2026 unaudited interim condensed consolidated financial statements, both of which are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com).AbbreviationsThe following abbreviations may be referenced in this news release:bbl(s)barrel(s)bbls/dbarrels per dayboebarrels of oil equivalentboe/dbarrels of oil equivalent per dayMcfthousand cubic feetMcf/dthousand cubic feet per dayMMcfmillion cubic feetMMcf/dmillion cubic feet per dayLNGliquefied natural gasNGL(s)natural gas liquid(s)SOURCE: Touchstone Exploration, Inc.View the original press release on ACCESS NewswireOriginal: Touchstone Exploration Reports First Quarter 2026 Results and Operational Update

Touchstone Announces Annual 2025 Financial And Operating ResultsMarch 31, 2026 2:00 AM
ACCESS NewswireCALGARY, AB / ACCESS Newswire / March 31, 2026 / Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX:TXP)(LSE:TXP) reports its operating and condensed financial results for the three months and year ended December 31, 2025. Selected financial information is outlined below and should be read in conjunction with Touchstone's December 31, 2025 audited consolidated financial statements and related Management's discussion and analysis, both of which are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). Unless otherwise stated, all financial amounts presented herein are in United States dollars, and all production volumes disclosed herein are sales volumes based on Company working interest before royalty burdens.Fourth Quarter 2025 Financial and Operating HighlightsProduction: Averaged 4,877 boe/d (71% natural gas) in Q4 2025, an 8% decrease from 5,287 boe/d (73% natural gas) in Q4 2024. The Central field contributed 2,065 boe/d, highlighting its significant contribution to the portfolio since its acquisition.Revenue: Petroleum and natural gas sales totaled $11.0 million, a 19% decrease from $13.54 million in Q4 2024, primarily due to lower production and softened realized pricing.Crude oil sales: $5.0 million from average production of 996 bbls/d at an average realized price of $54.57 per barrel.NGL sales: $1.15 million from average production volumes of 413 bbls/d at an average realized price of $30.30 per barrel.Natural gas sales: $4.85 million from average production of 20.8 MMcf/d (3,468 boe/d) at an average realized price of $2.54 per Mcf.Operating netback: Generated $4.22 million, a 39% decrease year-over-year, impacted by lower petroleum and natural gas sales and increased natural gas operating expenses.Funds flow from operations: Totaled $0.62 million, compared to $3.61 million in Q4 2024. The decline was driven by lower operating netbacks and higher cash finance expenses, partially offset by reduced general and administration expenses.Net income: Reported $13.62 million ($0.04 per share), compared to a net loss of $0.54 million in Q4 2024. The increase was primarily non-cash, driven by a $9.55 million deferred tax recovery and a $4.98 million gain on asset dispositions.Capital investments: Invested $7.44 million, focused on drilling the CR-3 development well on the Central property.Financial position: Net debt decreased to $72.89 million from $77.75 million at September 30, 2025, supported by $8.37 million in net proceeds from a private placement.Annual 2025 Financial and Operating HighlightsHealth and safety: Achieved a safety milestone with zero lost-time injuries recorded throughout 2025.Strategic acquisition: Completed the acquisition of Shell Trinidad Central Block Limited on May 16, 2025. The asset contributed an average of 2,095 boe/d of liquids-rich natural gas since closing and provides critical exposure to global LNG pricing.Annual production: Averaged 4,686 boe/d, an 18% decrease from 5,734 boe/d in 2024. Incremental production from the Central block partially mitigated natural declines at Cascadura and mature crude oil fields.Financial performance:Revenue: Petroleum and natural gas sales totaled $45.82 million, down 20% from $57.47 million in 2024, primarily attributable to lower natural gas production volumes and decreased crude oil and liquids realized prices.Operating netback: Generated $21.26 million ($12.44 per boe), compared to $32.89 million ($15.68 per boe) in 2024.Funds flow from operations: Reported $5.37 million, a 68% year-over-year decrease from $16.75 million in 2024.Net income: Realized $10.89 million ($0.04 per share), compared to $8.27 million ($0.04 per basic share and $0.03 per diluted share) in 2024, reflecting a $4.98 million gain on asset disposition and a $12.61 million deferred income tax recovery recorded in 2025.Capital program: Executed a $28.38 million capital program, pivoting from infrastructure build out to active drilling, including three gross (2.25 net) development wells.Strategic portfolio rationalization: Divested the non-core Fyzabad property. Consideration included three turnkey drilling wells on the Company's WD-8 and WD-4 blocks, aligning with our strategy to focus on higher-return core assets.Financing and liquidity:Bank debt: Obtained an additional $30 million term loan facility to finance the Central block acquisition.Convertible debt: Issued a $12.5 million three-year secured convertible debenture to fund the completion of the 2025 Cascadura drilling program.Private placements: Raised an aggregate of $13.6 million in net proceeds through two equity placements in 2025.2025 Financial and Operating Results Overview Three months ended December 31, Year ended December 31, 2025 2024 % change(4) 2025 2024 % change(4) Operational Average daily production Crude oil(1)(bbls/d) 996 1,310 (24) 1,087 1,220 (11)NGLs(1)(bbls/d) 413 121 100 276 132 100 Crude oil and liquids(1)(bbls/d) 1,409 1,431 (2) 1,363 1,352 1 Natural gas(1)(Mcf/d) 20,805 23,136 (10) 19,939 26,290 (24)Average daily production (boe/d)(2) 4,877 5,287 (8) 4,686 5,734 (18) Production mix (% of production) Crude oiland liquids(1) 29 27 29 24 Natural gas(1) 71 73 71 76 Average realized prices(3) Crude oil(1)($/bbl) 54.57 62.50 (13) 59.45 67.91 (12)NGLs(1)($/bbl) 30.30 62.05 (51) 33.67 69.10 (51)Crude oil and liquids(1)($/bbl) 47.46 62.47 (24) 54.24 68.03 (20)Natural gas(1)($/Mcf) 2.54 2.50 2 2.59 2.48 4 Realized commodity price ($/boe)(2) 24.53 27.85 (12) 26.79 27.39 (2) Operating netback ($/boe)(2) Realized commodity price(3) 24.53 27.85 (12) 26.79 27.39 (2)Royalty expense(3) (7.15) (6.59) 8 (6.73) (6.61) 2 Operating expense(3) (7.97) (7.09) 12 (7.62) (5.10) 49 Operating netback(3) 9.41 14.17 (34) 12.44 15.68 (21) Financial ($000's except per share amounts) Petroleum and natural gas sales 11,001 13,543 (19) 45,817 57,470 (20) Cash from operating activities 9,903 822 100 20,130 13,181 53 Funds flow from operations 623 3,614 (83) 5,371 16,748 (68) Net income (loss) 13,621 (542) n/a 10,888 8,272 32 Per share - basic 0.04 (0.00) n/a 0.04 0.04 - Per share - diluted 0.04 (0.00) n/a 0.04 0.03 33 Capital expenditures(3) 7,443 3,106 100 28,377 23,679 20 Acquisition expenditures - - n/a 28,400 - n/a Principal balance of bank debt 57,750 35,000 65 Principal balance of convertible debenture 12,500 - n/a Net debt(3) 72,890 29,109 100 Share Information(000's) Weighted avg. shares outstanding: Basic 304,674 236,461 29 262,969 235,509 12 Diluted 304,674 236,461 29 262,969 236,492 11 Outstanding shares - end of period 324,734 236,461 37 Notes:Refer to "Advisories -Product Type Disclosures" for further information.In the table above and elsewhere in this news release, references to "boe" mean barrels of oil equivalent that are calculated using the energy equivalent conversion method. Refer to "Advisories -Oil and Natural Gas Measures" for further information.Specified or supplementary financial measure. Refer to "Advisories - Non-GAAP Financial Measures" for further information.Percentages have been rounded to the nearest whole number and are limited to increases or decreases of 100 percent.Liquidity and Going ConcernManagement continues to closely monitor the Company's liquidity position to ensure that operating cash flows and working capital remain sufficient to support ongoing financial obligations, planned capital programs, and future work commitments.The Company's audited consolidated financial statements for the year ended December 31, 2025 include a note regarding the existence of material uncertainties over its ability to continue as a going concern. As at December 31, 2025, the Company had a working capital deficit of $15.4 million, excluding the convertible debenture maturing in 2028. Additionally, the Company currently projects a breach of its bank debt net senior funded debt to trailing annual EBIDA and debt service coverage covenants as of December 31, 2026, which could result in the bank debt becoming due at that time.Management is actively focused on several initiatives to bolster liquidity and address these uncertainties:Operational cash flow: Realizing anticipated production growth from the 2025 and 2026 drilling programs and benefiting from strengthening commodity pricing.Value-added tax receivables: Monitoring and accelerating the collection of outstanding value-added tax receivables.Capital management: Maintaining active engagement with its lender regarding potential amendments to the loan agreement or obtaining waivers for the projected 2026 covenant breaches.In the absence of mitigating actions, the Company's current cash resources may not be sufficient to fund expected operating and development expenditures and scheduled bank debt repayments over the next twelve months. Should these conditions persist, the Company is actively evaluating and is prepared to implement contingency measures, including optimizing capital expenditures or seeking additional debt or equity financing to ensure ongoing obligations are met.2025 Annual FilingsTouchstone has filed its annual audited financial statements, along with the related Management's discussion and analysis and annual information form ("AIF") for the financial year ended December 31, 2025. The AIF includes reserves data and other oil and gas disclosures in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). The reserves information presented in the AIF is consistent with the details disclosed in Touchstone's news release issued February 25, 2026. These documents are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com).Touchstone Exploration Inc.Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487Scott Budau, Chief Financial OfficerBrian Hollingshead, EVP Engineering and Business DevelopmentAdvisoriesForward-looking StatementsThe information provided in this news release contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends", and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this news release speak only as of the date hereof and are expressly qualified by this cautionary statement.Specifically, this news release includes, but is not limited to, forward-looking statements relating to: the Company's business plans, strategies, priorities and development plans; anticipated developmental drilling and facility upgrade activities, including locations, the timing thereof and related production and cash flows therefrom; the Company's expectation of improved commodity pricing market fundamentals and the benefits to be derived therefrom; the Company's expectations of accelerating the collection of VAT; the Company's ability to amend its current loan agreement and/or obtain future waivers for projected financial covenant breaches; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund current obligations future capital expenditures. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2025 Annual Information Form dated March 30, 2026 which is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.Non-GAAP Financial MeasuresThis news release references various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under Canadian Generally Accepted Accounting Principles ("GAAP") and do not have a standardized meaning prescribed by IFRS Accounting Standards as Issued by the International Accounting Standards Board ("IFRS") and therefore may not be comparable to similar financial measures disclosed by other issuers. Readers are cautioned that the non-GAAP financial measures referred to herein should not be construed as alternatives to, or more meaningful than, measures prescribed by IFRS, and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are commonly used in the oil and natural gas industry and by the Company to provide shareholders and potential investors with additional information regarding the Company's performance. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures disclosed herein.Operating netbackTouchstone uses operating netback as a key performance indicator of field results. The Company considers operating netback to be a key measure as it demonstrates Touchstone's profitability relative to current commodity prices and assists Management and investors with evaluating operating results on a historical basis. Operating netback is a non-GAAP financial measure calculated by deducting royalty and operating expenses from petroleum and natural gas sales. The most directly comparable financial measure to operating netback disclosed in the Company's consolidated financial statements is petroleum and natural gas revenue net of royalties. Operating netback per boe is a non-GAAP ratio calculated by dividing the operating netback by total production volumes for the period. Presenting operating netback on a per boe basis allows Management to better analyze performance against prior periods on a comparable basis.Capital expendituresCapital expenditures is a non-GAAP financial measure that is calculated as the sum of exploration and evaluation asset expenditures and property, plant and equipment expenditures included in the Company's consolidated statements of cash flows and is most directly comparable to cash used in investing activities. Touchstone considers capital expenditures to be a useful measure of its investment in its existing asset base.Working capital and net debtWorking capital and net debt are capital management measures used by Management to monitor the Company's capital structure to evaluate its true debt and liquidity position and to manage capital and liquidity risk.Working capital is calculated as current assets minus current liabilities as presented in the applicable consolidated balance sheet, excluding the carrying value of the convertible debenture. Management excludes the carrying value of the convertible debenture from working capital given the instrument has a maturity date in 2028.Net debt is determined by adding the Company's working capital surplus or deficit to the principal (undiscounted) balance of non-current bank debt and the principal (undiscounted) balance of the convertible debenture. Net debt is most directly comparable to total liabilities as disclosed in the Company's consolidated balance sheets.Supplementary Financial MeasuresRealized commodity price per boe - is comprised of petroleum and natural gas sales as determined in accordance with IFRS, divided by the Company's total production volumes for the period.Realized crude oil sales per barrel, realized NGL sales per barrel and realized natural gas sales per boe - are comprised of sales from the respective product type as determined in accordance with IFRS, divided by the Company's total production volumes of the respective product type for the period. Crude oil sales, NGL sales and natural gas sales are components of petroleum and natural gas sales as disclosed on the consolidated statements of comprehensive income.Realized crude oil and liquids sales per barrel - is comprised of the sum of crude oil and NGL product sales as determined in accordance with IFRS, divided by the sum of the Company's total crude oil and NGL production volumes for the period. Crude oil and NGL sales are components of petroleum and natural gas sales.Royalty expense per boe - is comprised of royalty expense as determined in accordance with IFRS, divided by the Company's total production volumes for the period.For further information, please refer to the "Advisories - Non-GAAP Financial Measures" section of the Company's most recent Management's discussion and analysis for the three months and year ended December 31, 2025 accompanying the December 31, 2025 audited consolidated financial statements, both of which are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). Touchstone's Management's discussion and analysis is incorporated by reference herein and includes further discussion of the purpose and composition of the specified non-GAAP financial measures consistently used by the Company and detailed reconciliations to the most directly comparable GAAP measures.Oil and Natural Gas MeasuresTo provide a single unit of production for analytical purposes, natural gas production has been converted mathematically to barrels of oil equivalent. The Company uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalent conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and may be misleading, particularly if used in isolation, as the value ratio between crude oil and natural gas based on current commodity prices may differ significantly from the 6:1 energy equivalency ratio.Product Type DisclosuresThis news release includes references to crude oil, NGLs, crude oil and liquids, natural gas average daily production volumes. Under NI 51-101, disclosure of production volumes should include segmentation by product type as defined in the instrument. In this news release, references to "crude oil" refer to light and medium crude oil and heavy crude oil; references to "NGLs" refer to condensate and propane; and references to "natural gas" refer to conventional natural gas, all as defined in the instrument. References to "crude oil and liquids" include crude oil and NGLs.For further information regarding specific product disclosures in accordance with NI 51-101, including 2025 and 2024 total and average production information by product type, please refer to the "Advisories - Product Type Disclosures" section of the Company's most recent Management's discussion and analysis for the three months and year ended December 31, 2025 accompanying the December 31, 2025 audited consolidated financial statements, both of which are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com).AbbreviationsThe following abbreviations may be referenced in this news release:bbl(s) barrel(s)bbls/d barrels per dayboe barrels of oil equivalentboe/d barrels of oil equivalent per dayMcf thousand cubic feetMcf/d thousand cubic feet per dayMMcf million cubic feetMMcf/d million cubic feet per dayLNG liquefied natural gasNGL(s) natural gas liquid(s)SOURCE: Touchstone Exploration, Inc.View the original press release on ACCESS NewswireOriginal: Touchstone Announces Annual 2025 Financial And Operating Results

Touchstone Exploration Announces an Operational UpdateMarch 30, 2026 2:00 AM
ACCESS NewswireCALGARY, AB / ACCESS Newswire / March 30, 2026 / See attached hereTouchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX:TXP)(LSE:TXP) provides an update on its recent operational activities in the Republic of Trinidad and Tobago.HighlightsCarapal Ridge 3 onstream: The Carapal Ridge 3 ("CR-3") well was successfully tied into the Central block natural gas facility and brought onstream on March 28, 2026. The well is currently flowing natural gas and condensate as it continues to recover drilling and completion fluids.Central block throughput growth: Since the Central block acquisition, gross natural gas throughput (excluding Coho-1 volumes) has increased from approximately 16 MMcf/d to 19 MMcf/d through optimization, rising further to approximately 21.5 MMcf/d following the startup of CR-3. During the current cleanup phase, CR-3 has demonstrated intermittent peak rates of up to 5.7 MMcf/d during liquid offloading.Cascadura compressor progress: The Cascadura facility booster compressor successfully completed run testing in Houston. The unit is currently in transit to Trinidad, with arrival at port expected in April 2026 and commissioning targeted for May 2026.Oil block drilling: The Company successfully drilled the FR-1835 well on the WD-8 block, encountering approximately 290 feet of net pay. The drilling rig has since spudded the second well in a four-well campaign.Production update: Average net sales volumes for January and February 2026 were 4,778 boe/d, consisting of approximately 20.5 MMcf/d of natural gas and 1,357 bbls/d of crude oil and liquids.Paul R. Baay, President and Chief Executive Officer, commented:"Our current strategy is twofold: maximizing the utilization of existing excess capacity in our processing facilities through targeted drilling and deploying capital toward our highest-priced sales contracts to optimize project returns. The CR-3 well achieves both objectives, adding immediate production while allowing us to benefit from strengthening LNG market fundamentals and improved pricing.As the first new well in the field in over 17 years, our team was successful in bringing CR-3 online and into the plant. In line with the performance of historical wells in this field, the cleanup process is expected to take several weeks, and we will provide further updates as stabilized rates are established.The Central block acquisition has successfully marked our entry into the LNG market. By increasing throughput without incurring additional incremental operating costs, we are leveraging our infrastructure to capture higher-value sales. Simultaneously, our legacy crude oil blocks continue to provide low-risk production growth, funded by the strategic disposition of non-core assets last year. Finally, the upcoming Cascadura compressor installation is a vital investment that is expected to stabilize short-term production and extend the long-term economic life of the field."Central BlockThe CR-3 well commenced production on March 28, 2026, and is currently flowing natural gas, 58-degree API condensate, and drilling and completion fluids. While initial deliverability is currently being impacted by mud losses and liquids in the wellbore, the well continues to clean up drilling and completion fluids to the facility. Increased production from CR-3 is expected to accelerate the fulfillment of gas volumes committed under "deliver or pay" requirements, enabling a strategic shift toward the Company's higher-priced LNG sales contracts.Since the May 2025 acquisition, Touchstone has executed an active optimization program focused on reducing facility operating costs and increasing plant throughput. Average natural gas throughput volumes for the Central block during January and February 2026 were approximately 3,435 boe/d (net 2,233 boe/d).Realized LNG pricing (prior to fees) for the period was $6.74/MMbtu in January and an estimated $3.98/MMbtu in February, supported by strong Henry Hub pricing early in the year. We expect continued pricing strength in March, driven by international LNG market dynamics and geopolitical supply disruptions. In contrast to the variable LNG market, Ortoire volumes, including Cascadura and Coho production, continue to receive a fixed natural gas price of $2.33/MMbtu.Cascadura CompressorThe Cascadura booster compressor successfully completed a two-day run test in Houston, Texas during February 2026 and is currently in transit to Trinidad. Upon its expected arrival in April, the unit will be transported to the Cascadura facility for installation, with commissioning targeted for May 2026.The unit is designed to mitigate elevated sales pipeline pressures, which currently range from 650 to 750 psi and constrain production. By reducing wellhead backpressure, the compressor is expected to improve both production rates and overall operational stability at the facility.Oil BlocksFollowing the December 2025 asset swap of the non-core Fyzabad property for three turnkey development wells, the Company began a four-well drilling campaign on the WD-8 and WD-4 blocks in early March 2026.The first well, FR-1835, was spud on March 7, 2026 and reached total depth on March 16, 2026. Wireline logs indicate approximately 290 feet of net hydrocarbon pay. This well was drilled ahead of schedule, with all turnkey drilling costs covered by the operator, apart from certain ancillary drilling equipment costs. The second well, FR-1836, was spud on March 26, 2026, and is currently drilling. Upon reaching total depth on FR-1836, the drilling rig will demobilize, and completion and tie-in operations will proceed for both wells. The rig is then expected to move to the WD-4 block in the third quarter of 2026 to drill two additional wells.Touchstone Exploration Inc.Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487Brian Hollingshead, EVP Engineering and Business DevelopmentAdvisoriesWorking InterestTouchstone holds a 65 percent operating working interest in the Central block, with Heritage Petroleum Company Limited ("Heritage") holding the remaining 35 percent participating interest. Unless otherwise noted, all Central block natural gas throughput volumes referenced herein are reported as gross volumes.The Company also holds an 80 percent working interest in the Cascadura field, located on the Ortoire block, with Heritage holding the remaining 20 percent working interest. Additionally, Touchstone has a 100 percent working interest in the WD-8 block via a Lease Operatorship Agreement with Heritage.Forward-Looking StatementsThe information provided in this news release contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends", and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this news release speak only as of the date hereof and are expressly qualified by this cautionary statement.Specifically, this news release includes, but is not limited to, forward-looking statements relating to: the Company's business plans, strategies, priorities and development plans; expected and field estimated Central block natural gas throughput and production rates following the tie-in of the CR-3 well, including the timing and success of well cleanup operations; the timing of the delivery, installation, and commissioning of the Cascadura booster compressor and its anticipated impact on production stability and wellhead backpressures; the success of the ongoing four-well drilling campaign on the WD-8 and WD-4 blocks, including the timing of drilling, completions and tie-ins; the estimated hydrocarbon net pay of FR-1835 based on internal interpretations of wireline logs, which may not be indicative of ultimate production or reserves; the potential for gas sales under specific LNG contracts, including the Company's expectation that realized pricing will be higher than current pricing and the impact of international benchmarks and geopolitical disruptions on future pricing; future drilling opportunities within the Ortoire and Central blocks; the Company's expectation of improved LNG market fundamentals; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund future capital expenditures. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2024 Annual Information Form dated March 19, 2025 which is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.Oil and Gas MeasuresTo provide a single unit of production for analytical purposes, natural gas production has been converted mathematically to barrels of oil equivalent. The Company uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalent conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and may be misleading, particularly if used in isolation, as the value ratio between crude oil and natural gas based on current commodity prices may differ significantly from the 6:1 energy equivalency ratio.Product Type DisclosuresThis news release includes references to January 2026 and February 2026 average daily production. In accordance with NI 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), disclosure of production volumes must include segmentation by product type as defined in the instrument. In this news release, references to "crude oil and liquids" include the combined product types light and medium crude oil, condensate and propane, and references to "natural gas" refer to conventional natural gas, all as defined in the instrument.The Company's average production for January and February 2026 consist of the following product types as defined in NI 51-101 using a conversion of 6 Mcf to 1 boe where applicable.PeriodLight and Medium Crude Oil (bbls/d)Condensate (bbls/d)Other NGLs (bbls/d)Conventional Natural Gas (Mcf/d)Total Oil Equivalent (boe/d) January 202688713429920,8774,800February 202695013731120,1454,755Average91713630420,5294,778 AbbreviationsThe following abbreviations are referenced in this news release:bbls/d barrels per day
MMcf/d million cubic feet per day
boe/d barrel of oil equivalent per day
psi pounds per square inch
LNG liquefied natural gas
MMbtu million British thermal units
API American Petroleum InstituteSOURCE: Touchstone Exploration, Inc.View the original press release on ACCESS NewswireOriginal: Touchstone Exploration Announces an Operational Update

Touchstone Exploration Announces 2025 Year-End ReservesFebruary 25, 2026 2:00 AM
ACCESS NewswireCALGARY, AB / ACCESS Newswire / February 25, 2026 / Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX:TXP)(LSE:TXP) announces 2025 year-end reserves. Touchstone's independent reserves evaluation was prepared by GLJ Ltd. ("GLJ") with an effective date of December 31, 2025 (the "Reserves Report"). Highlights of our total proved developed producing ("PDP"), total proved ("1P"), and total proved plus probable ("2P") reserves from the Reserves Report are provided below. Unless otherwise stated, all financial amounts referenced herein are stated in United States dollars. Readers are further cautioned to read the applicable advisories contained herein.Paul Baay, President and Chief Executive Officer, commented:"Our year-end reserves report highlights the strategic integration of the Central block into our producing reserve base, establishing a new pillar for LNG-linked growth alongside our stable oil production and Ortoire natural gas assets. This year's report also reflects the expansion of our gas marketing portfolio, underpinned by fixed-price sales at Ortoire and high-value LNG contracts tied to Central block production.While data from the Cascadura-5 well necessitated a downward revision to our Block B reserves, Block A remains on forecast and continues to represent a significant opportunity for production growth, particularly as natural gas pricing is subject to redetermined in October 2027.This independent evaluation underscores the substantial value of our Trinidadian portfolio. The NPV10 of future net revenues for our 2P reserves was estimated at approximately $653 million before tax and approximately $315 million after tax, which represented a 2 percent increase over 2024 despite our 2025 production.Furthermore, the addition of medium-gravity oil reserves from Cascadura-5 reinforces the potential of our emerging Herrera play. Through low-cost recompletion opportunities, we are well-positioned to efficiently enhance our production base by tapping lower-zone oil within our Block B assets.Looking ahead, we remain focused on execution. We look forward to tying in Carapal Ridge-3 for production in late March 2026, commencing our legacy oil block drilling program in March, and commissioning the Cascadura compressor in the second quarter of 2026. "2025 Operational HighlightsTransformational acquisition: Closed and integrated the acquisition of a 65 percent working interest in the Central block, successfully adding base LNG production and significant reserves to the Company's portfolio.Facility optimization: Implemented operational enhancements at the Central block natural gas processing plant, driving an approximate 20 percent production increase over acquired levels.Cascadura-4 drilling: While the well successfully encountered hydrocarbon-bearing zones, the drill string became irretrievably stuck during operations. Following an assessment of potential completion options, the Company has determined that the ability to safely and reliably produce from the current wellbore is unlikely.Cascadura-5 drilling: Drilled and brought onstream the first Block B well to produce both natural gas and medium-gravity crude oil, diversifying the Cascadura production stream. The well contributed a field estimated gross average sales of approximately 1.9 MMcf/d of natural gas and 46 bbls/d of medium crude oil (approximately 362 boe/d) in December 2025.Carapal Ridge-3 drilling: Drilled the first new well in the Central block in over 17 years, encountering approximately 1,000 feet of net Herrera sand pay.Post-year-end progress: Successfully completed the well in the Herrera formation. Following perforation, cleanup operations recovered natural gas and associated liquids, confirming hydrocarbon presence. The well is currently shut-in and is scheduled to be tied into the Central block facility for production in late March 2026.Base oil stability: Maintained consistent performance across the CO-1, WD-4, and WD-8 blocks through a disciplined program of optimizations and workovers, ensuring a stable production foundation throughout 2025.Post-year-end progress: In December 2025, the Company completed the sale of the non-core Fyzabad property in exchange for three turnkey drilling wells on the WD-8 and WD-4 blocks. A drilling rig is currently mobilizing to WD-8 to commence the first of a four well campaign, with spudding anticipated in early March 2026.Production : Achieved 2025 annual average net production of 4,686 boe/d, with fourth quarter performance climbing to 4,877 boe/d following the startup of Cascadura-5 and Central block optimizations.Year-end 2025 Reserves OverviewTouchstone's year-end reserves reflect the strategic addition of natural gas and NGL reserves from the Central block acquisition, alongside a technical revision to Block B at Cascadura. The Cascadura subsurface model has evolved with each development well, providing a foundation for full-field development. The Cascadura compressor is targeted for commissioning in the second quarter of 2026, which is expected to provide a stable production profile to enhance future forecasting and well-deliverability modeling. With an established pipeline network and infrastructure in place, the Company is positioned for efficient and cost-effective future development.Reserves changes: Relative to year-end 2024 and after accounting for 2025 production, gross PDP reserves increased by 45 percent to 9,933 Mboe. Gross 1P reserves declined by 5 percent to 27,559 Mboe, and gross 2P reserves decreased by 1 percent to 49,558 Mboe.Asset base evolution: The increase in year-end 2025 PDP reserves reflect the acquisition of the Central block and the addition of Cascadura-5 to the producing base, partially offset by the disposition of the Fyzabad block.Technical revisions: Changes to 1P and 2P reserves reflect technical revisions to natural gas and NGL reserves at Cascadura Block B and the Fyzabad disposition, offset by the Central block acquisition and positive technical revisions to crude oil reserves at CO-1, WD-4, and WD-8.Before tax value: The before-tax NPV10 of future net revenues increased 35 percent year-over-year to $107 million for PDP. Before-tax NPV10 for 1P reserves was $336 million (down 5 percent from 2024) and $653 million for 2P reserves (down 3 percent from 2024).After tax Value: Realized after-tax PDP NPV10 reached $89 million, a 34 percent increase from the prior year. After-tax 1P and 2P NPV10 increased by 2 percent compared to 2024 levels.Extensive reserve life: The Company maintains a robust reserve life index of 13.3 years (1P) and 23.2 years (2P), highlighting the long-term sustainability of the asset portfolio.2025 Year-end Reserves Report SummaryTouchstone's year-end light and medium crude oil, conventional natural gas and NGL reserves in Trinidad were evaluated by independent reserves evaluator, GLJ, in accordance with definitions, standards, and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101").The reserve estimates set forth below are based upon GLJ's Reserves Report dated February 24, 2026, with an effective date of December 31, 2025. The Reserves Report uses the average price and inflation forecasts of three independent evaluation consultants (GLJ, McDaniel & Associates Consultants Ltd., and Sproule Associates Ltd. (collectively, the "Consultants")). All values in this news release are based on the three Consultants' average forecast pricing and GLJ's estimates of future operating and capital costs as of December 31, 2025. Additional reserves information as required under NI 51-101 will be included in the Company's Annual Information Form, which will be filed on SEDAR+ (www.sedarplus.ca) on or before March 31, 2026. Please refer to " Advisories: Reserves Disclosure " for further information. In certain tables set forth below, the columns may not add due to rounding.2025 Reserves Summary by Category PDP1P2P Total gross reserves (1) (Mboe)9,93327,55949,558Reserve additions (2) (Mboe)4,8822751,281NPV10 before income tax (3) ($000's)107,295335,710652,516NPV10 after income tax (3) ($000's)89,142183,103314,844 Notes:Gross reserves are the Company's working interest share before deduction of royalty obligations.Reserve additions exclude 2025 annual production and include the effect of 2025 acquisitions and dispositions. See " Advisories: Oil and Gas Metrics ".Based on the Consultants' average December 31, 2025 forecast prices and costs. See " Forecast Prices and Costs " herein.Summary of Crude Oil and Natural Gas Reserves by Product TypeCompany Net (3) ReservesLight and Medium Crude Oil (Mbbl)Conventional Natural Gas (MMcf)Natural Gas Liquids (Mbbl) ( 2)Total Oil Equivalent (Mboe) Company Gross (1) ReservesLight and Medium Crude Oil (Mbbl)Conventional Natural Gas (MMcf)Natural Gas Liquids (Mbbl) (2)Total Oil Equivalent (Mboe) Proved Developed producing3,27435,2407859,933Developed non-producing1,3327,4932512,832Undeveloped4,54459,71829714,795Total Proved9,151102,4511,33327,559 Probable8,96076,03636721,999Total Proved plus Probable18,111178,4861,70049,558 Proved Developed producing1,94430,6246877,735Developed non-producing9006,5172202,206Undeveloped3,39251,89026012,300Total Proved6,23689,0311,16622,241 Probable6,80566,09132118,141Total Proved plus Probable13,041155,1221,48740,382Notes:Gross reserves are the Company's working interest share before deduction of royalty obligations.NGLs including field condensate.Net reservesare the Company's working interest share after the deduction of royalty obligations.Summary of Net Present Values of Future Net RevenuesNet Present Values Before Income Taxes (1) ($000's)UndiscountedDiscounted at 5%Discounted at 10%Discounted at 15%Discounted at 20% Proved Developed producing156,204126,758107,29593,20282,459Developed non-producing77,61560,53949,82642,32136,719Undeveloped290,765225,246178,588144,311118,450Total Proved524,584412,543335,710279,834237,627 Probable584,583419,085316,806247,878198,922Total Proved plus Probable1,109,167831,628652,516527,712436,550Net Present Values After Income Taxes (1)(2) ($000's)UndiscountedDiscounted at 5%Discounted at 10%Discounted at 15%Discounted at 20% Proved Developed producing116,217101,36489,14279,35071,433Developed non-producing32,88427,69924,23221,67419,661Undeveloped123,26392,00869,72953,51541,476Total Proved272,364221,071183,103154,539132,570 Probable242,575175,757131,742101,49279,928Total Proved plus Probable514,939396,829314,844256,031212,498Notes:Based on the Consultants' average December 31, 2025 forecast prices and costs. See " Forecast Prices and Costs " herein.The after-tax net present values prepared by GLJ in the evaluation of the Company's petroleum and natural gas assets presented herein are calculated by considering current Trinidad tax regulations and are based on the Company's estimated tax pools and non-capital losses as of December 31, 2025. The values reflect the expected income tax burden on the assets on a consolidated basis. Values do not represent an estimate of the value at the business entity level or consider tax planning, which may be significantly different. See "Advisories: Unaudited Financial Information".Reconciliation of Gross Reserves by Product TypeThe following table sets forth a reconciliation of the Company's total gross proved, probable, and proved plus probable reserves by product type as of December 31, 2025, against such reserves as at December 31, 2024. The reconciliation is based on forecast price and cost assumptions.Reserves Category and FactorsLight and Medium Crude Oil (Mbbl)Heavy Crude Oil(Mbbl)Conventional Natural Gas (MMcf)Natural Gas Liquids (Mbbl) (1)Total Oil Equivalent (Mboe) Total Proved December 31, 2024 (2)9,360276113,37753729,070Extensions and improved recovery (3)191---191Technical revisions (4)(8)-(34,909)(180)(6,006)Acquisitions (5)--31,6471,0866,361Dispositions (5)-(258)--(258)Economic factors (6)(12)---(12)Production(379)(18)(7,664)(111)(1,785)December 31, 20259,151-102,4511,33327,559 Total Probable December 31, 2024 (2)8,8895670,75025720,993Extensions and improved recovery (3)210---210Technical revisions (4)(123)-1,752(13)156Acquisitions (5)--3,534123712Dispositions (5)-(56)--(56)Economic factors (6)(15)---(15)December 31, 20258,960-76,03636721,999 Total Proved plus Probable December 31, 2024 (2)18,249332184,12779450,063Extensions and improved recovery (3)400---400Technical revisions (4)(132)-(33,157)(193)(5,851)Acquisitions (5)--35,1811,2107,073Dispositions (5)-(314)--(314)Economic factors (5)(27)---(27)Production(379)(18)(7,664)(111)(1,785)December 31, 202518,111-178,4861,70049,558Notes:NGLs including field condensate.Prior year reserve estimates per GLJ's independent reserves evaluation dated March 5, 2025, with an effective date of December 31, 2024.Reserve amounts for Infill Drilling, Extensions and Improved Recovery are combined and reported as "Extensions and improved recovery".Technical revisions include all changes in reserves due to well performance and previously booked wells which were drilled in the year.Touchstone acquired its interest in the Central block effective May 16, 2025, and disposed of its interest in the Fyzabad block effective Dec. 1, 2025.Economic factors are the change in reserves exclusively due to changes in pricing.As of December 31, 2025, gross proved plus probable reserves were 49,558 Mboe, representing a slight decrease of 505 Mboe or 1 percent from the prior year.Light and medium crude oil: proved plus probable reserves decreased by 138 Mbbl from 2024. This was primarily driven by 2025 annual production and negative technical revisions at Balata East. These decreases were partially offset by positive technical revisions and extensions at WD-4, WD-8, and CO-1, as well as geological refinements in the Cascadura Block B oil zone.Heavy crude oil: proved plus probable reserves reduced by 332 Mbbl from the prior year following the disposition of the Fyzabad property and related 2025 production.Conventional natural gas: proved plus probable reserves decreased by 5,641 MMcf from 2024. Significant negative technical revisions at Cascadura Block B and annual production were the primary drivers, though largely offset by the strategic acquisition of the Central block.Natural gas liquids: proved plus probable reserves increased by 906 Mbbl (approximately 114 percent) from the prior year, almost entirely attributed to the Central Block acquisition, which outweighed performance-related technical revisions at Cascadura.Future Development CostsThe following table provides information regarding the future development costs ("FDC") deducted in the estimation of the Company's future net revenue using forecast prices and costs as included in the Reserves Report.Year ($000's) 1P2P 2026 10,55814,8682027 26,09333,4362028 34,19556,9042029 32,46169,6732030 11,37227,205Thereafter --Total undiscounted 114,680202,086Total discounted at 10% per year 90,953156,708The following table sets forth the changes in undiscounted FDC included in the Reserves Report against such costs in the December 31, 2024, reserves report prepared by GLJ dated March 5, 2025.($000's unless otherwise stated) 1P2P Increase in forecasted well costs 5,6189,243Decrease in forecasted well locations (13,611)(8,616)Decrease in forecasted facility and pipeline costs (1,586)(1,586)Total decrease in FDC from 2024 (9,579)(959)Total decrease in FDC from 2024 (%) (8)(0)Forecast Pricing and CostsForecast pricing and costs are prices and costs that are generally acceptable, in the opinion of GLJ, as being a reasonable outlook of the future as of the evaluation effective date. The forecast cost assumptions consider inflation with respect to future operating and capital costs.The following table sets forth the benchmark reference commodity prices and inflation rates reflected in the Reserves Data as of December 31, 2025. These price assumptions were provided to the Company by GLJ and represented the average price forecast of the Consultants as of the date of the Reserves Report.Forecast YearBrent Crude Oil (1)($/bbl)Henry Hub Natural Gas (1)($/MMBtu)NBP Natural Gas($/MMBtu)JKM Natural Gas($/MMBtu)Inflation Rate(% per year) 202663.923.7410.009.20-202769.133.789.749.702.0202874.363.859.9710.402.0202976.103.9310.2711.082.0203077.624.0110.4711.302.0203179.174.0910.6811.532.0203280.764.1710.8911.762.0203382.374.2611.1111.992.0203484.014.3411.3412.232.0203585.704.4311.5612.492.0Thereafter+2.0% / year+2.0% / year+2.0% / year+2.0% / year2.0 Note:This summary table identifies benchmark reference pricing schedules that might apply to a reporting issuer. Product sales prices will reflect these reference prices with further adjustments for specific marketing arrangements, quality differentials, heat content and transportation to point of sale.Touchstone Exploration Inc.Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487Brian Hollingshead, EVP Engineering and Business DevelopmentAdvisoriesForward-Looking StatementsThe information provided in this news release contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends", and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this news release speak only as of the date hereof and are expressly qualified by this cautionary statement.Specifically, this news release, but is not limited to, forward-looking statements relating to: the Company's business plans, strategies, priorities and development plans; the quality and quantity of prospective hydrocarbon accumulations based on wireline logs; field estimated production; the Company's expectations regarding timing and results of future drilling, completion, and tie-in operations at including anticipated production rates and commercial outcomes therefrom; estimated crude oil, NGL and natural gas reserves and the net present values of future net revenue therefrom; the forecasted future production, commodity prices, inflation rates and all future costs used by GLJ in their evaluation; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund future capital expenditures. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them.Information and statements relating to reserves are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated, and can be profitably produced in the future. The recovery and reserve estimates of Touchstone's reserves provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Consequently, actual results may differ materially from those anticipated in the forward-looking statements (see "Advisories: Reserves Disclosure").Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2024 Annual Information Form dated March 19, 2025 which is available under the Company's profile on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.touchstoneexploration.com). The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.Reserves DisclosureThe disclosure in this news release summarizes certain information contained in the Reserves Report but represents only a portion of the disclosure required under NI 51-101. Full disclosure with respect to the Company's reserves as at December 31, 2025 will be contained in the Company's Annual Information Form for the year ended December 31, 2025 which will be filed on SEDAR+ (www.sedarplus.ca) on or before March 31, 2026.All reserves values, future net revenue and ancillary information contained in this news release are derived from the Reserves Report unless otherwise noted. Unless otherwise noted, reserve references in this news release are Company "gross reserves". Company gross reserves are the Company's total working interest reserves before the deduction of any royalties payable by the Company. Estimates of reserves and future net revenue for individual properties may not reflect the same level of confidence as estimates of reserves and future net revenue for all properties, due to the effect of aggregation. All reserves assigned in the Reserves Report are located onshore in the Republic of Trinidad and Tobago and presented on a consolidated basis.The recovery and reserve estimates of Touchstone's crude oil, NGL and natural gas reserves provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than or less than the estimates provided herein. There are numerous uncertainties inherent in estimating quantities of petroleum and natural gas reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth herein are estimates only. This news release summarizes the crude oil, NGL and natural gas reserves of the Company and the net present values of future net revenue for such reserves using forecast prices and costs as at December 31, 2025, prior to provision for interest and finance costs, general and administration expenses, and the impact of any financial derivatives. It should not be assumed that the estimates of future net revenues presented herein represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained, and variances could be material.In the Reserves Report, GLJ estimated reserve volumes and future net revenues based on historical well performance, production forecasts and economic limits for individual wells. In certain cases, the forecast economic life of wells extends beyond the current terms of applicable licences or marketing agreements. While there is precedent for renewals and extensions, there is no assurance that such agreements will be renewed or extended on terms consistent with current assumptions. Any failure to extend these agreements would reduce the economic life of the associated reserves.Estimates of reserves and future net revenue therefrom in the Reserves Report have been made assuming the development of each property, in respect of which the estimate is made, will occur, and without the regard to the likely availability of funding required for the development. There can be no guarantee that funds will be available or that the Company's Board will allocate funding to develop all of the reserves attributable in the Reserves Report. Failure to develop those reserves could have a negative impact on our future cash from operating activities and financial position. Further, Touchstone may choose to delay development depending upon a number of circumstances including the existence of higher priority expenditures, available cash on hand, and borrowing capacity."Proved Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing, or if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty."Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves."Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.Certain terms used in this news release but not defined are defined in NI 51-101, CSA Staff Notice 51-324 - Revised Glossary to NI 51-101Standards of Disclosure for Oil and Gas Activities ("CSA 51-324") and/or the COGE Handbook and, unless the context otherwise requires, shall have the same meanings herein as in NI 51-101, CSA 51-324 and the COGE Handbook, as the case may be.Oil and Gas MeasuresTo provide a single unit of production for analytical purposes, natural gas production has been converted mathematically to barrels of oil equivalent. The Company uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalent conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.Oil and Gas MetricsThis news release contains oil and gas metrics that are commonly used in the oil and gas industry including reserves additions and reserve life index ("RLI"). These metrics have been prepared by Management and do not have standardized meanings or standardized methods of calculation, and therefore such measures may not be comparable to similar measures presented by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company, and future performance may not compare to the performance in prior periods, and therefore such metrics should not be unduly relied upon. The Company uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be relied upon for investment purposes.Reserve additions are calculated as the change in reserves from the beginning to the end of the applicable period excluding period production. Management uses this measure to determine the relative change of its reserves base over a period of time.RLI is calculated by dividing the applicable reserves by forecasted January 2026 annualized production volumes derived from the Reserve Report.Unaudited Financial InformationThe Company's estimated income tax pools and non-capital losses as at December 31, 2025 were incorporated into the after-tax net present values prepared by GLJ in the Reserves Report. These figures are based on unaudited estimated results and are subject to the same limitations as discussed in the forward-looking statements advisory disclosed herein. These estimated results are subject to change upon completion of the Company's audited financial statements for the year ended December 31, 2025, and changes could be material. Touchstone anticipates filing its audited consolidated financial statements and related management's discussion and analysis for the year ended December 31, 2025 on SEDAR+ (www.sedarplus.ca) on March 19, 2026.Product Type DisclosuresThis news release includes references to fourth quarter 2025 and annual 2025 average daily production. The following table provides production by product type composition as defined by NI 51-101.PeriodLight and Medium Crude Oil (bbls/d)Heavy Crude Oil(bbls/d)Condensate (bbls/d)Other NGLs (bbls/d)Conventional Natural Gas (Mcf/d)Total Oil Equivalent (boe/d) Fourth quarter of 20259682812728620,8054,877Annual 20251,0394810017619,9394,686 In this news release, references to "crude oil" include the combined product types light crude oil and medium crude oil and heavy crude oil; references to "NGLs" refer to condensate and propane; and references to "natural gas" refer to conventional natural gas, all as defined in NI 51-101 instrument.AbbreviationsThe following abbreviations referenced in this news release have the meanings set forth below:bbl(s)barrel(s)bbls/dbarrels per dayMbblthousand barrelsMcfthousand cubic feetMMcfmillion cubic feetMMBtumillion British Thermal UnitsNGL(s)natural gas liquid(s)boebarrels of oil equivalentboe/dbarrels of oil equivalent per dayMboethousand barrels of oil equivalentNPV10Net present value of future net revenue discounted by 10 percentLNGLiquefied natural gasSOURCE: Touchstone Exploration, Inc.View the original press release on ACCESS NewswireOriginal: Touchstone Exploration Announces 2025 Year-End Reserves

I’ve recently doubled my position. The value opportunity was too compelling. Production capacity for both plants is 42.3 boe/d gross. So, applying a 20% discount means the current production capacity is about 33.8 boe/d net * $19 net backs (using Q3 net back #) * 360 days = $231M FCF. Assume a high annual capex of $75M (best return on capital) and a realized 50% tax rate, the company can earn $78M or .33c per share based on 237M f/d shares. A p/e of 12 would mean a sp in the $4 range, roughly 3.5X from today’s closing price.

The risks to the above scenario playing out are management’s tarnished credibility after several years of disappointing the investor community by failing to come close to delivering on production timelines and projected output. As a result of this, they set the bar very low for themselves this year and so far appear to be on track to aggressively drill the development wells, tie them in and ramp up production. To get the egg off their face, the best strategy is to stop with the “wall of cash” quotables and just drill the wells, tie them in, prove out the resource and put up the eye-popping numbers this resource can deliver. Whether scaling up to full production takes 18 months or 3 years remains to be seen but at some point a big re-rate will occur. All imo.

I’ve been buying the stock recently. After disappointing investors for a good while, the company is finally under promising and hoping to over-deliver in 2024. The chart appears to have bottomed out with weekly MF divergence and has also formed a bullish flag on the daily. Lots of derisking to do this year behind the drill bit but optimizing the 2 CAS wells should hopefully generate better fcf than the results exiting 2023. The stock appears very cheap relative to the potential fcf their production capacity can produce. But they gotta “fill it”. Once they derisk and prove out the concept the rerate should reward the longs imo.

15th Nov 2023 TXP Investor presentation video

https://www.investormeetcompany.com/investor/meeting/investor-presentation-485

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Comments from the USA presentation

From a post by DB I was sent - comments from the US presentation done recently.


Worth rereading: Equityhawk:

Different from what we saw in London, very similar information, just presented differently.

Key takeaways from presentation:

Cipero sign-off coming in next 30 days, maybe next two to three weeks.

Swap will be done soon but no definitive timeline.

He said there is some debate on whether to spud Casc C before or after Christmas.

He said unlike when he was in the field, drill crews expect holidays off now.

The plan is 6 months from casc C spud to brining it online. Preparations are underway for flow line between A and C.

First Cretaceous drill probably end of 2024 maybe early ‘25 and they want to drill the three targets one after another.


Other information gleaned:

-Separator unit needed to upgrade the plant to 200 cost $600k. It cost $3m two years ago (Covid and steel prices).

They are going to wait on the liquids pipeline for now.

There may be ways to increase trucking efficiency in the future and they are pretty confident they can truck 2500bpd.

It seems that there is no connection between going to 90mmcfpd and the price negotiations. It sounds like those are more connected to the fact that the current gas price is only for Ortoire and the leverage may be the probable gas from Rio… which we don’t own yet.

Our relationship with the ministry is great. Stuart reaches out to them once a week or so to check if there’s anything they can do to help. They want all the gas we can give them.

They are going to give very conservative guidance from this point forward. Part of the problem with timelines in the past was they made projections based on experience in North America and didn’t anticipate how slow things move in TT. The strategy is to under promise and over deliver. (No Gantt chart, sorry posh).

They do have some takeover and acquisition targets, but nothing in stone and I couldn’t get any more info.

James confirmed that without the upgrades, he thinks he can push the plant to 100-110mmcfpd.

They aren’t building the pipeline before they take the plant to 200mmcfpd. Partly, C is on the up dip side so they don’t know if they will get as much liquid. When it makes sense to build a pipeline, they will build a pipeline.

So, one of the biggest takeaways I got was that he claimed in the presentation that it would be about 6 months from spur of casc C to bring gas to market. I thought he probably mis-spoke so I asked him to confirm that after the presentation. And he said “6 months”. I was very encouraged by that, especially since he made a big deal about making sure they are carful with their timelines going forward.

The prep work they are doing now is getting ready to clear a path for a road between A and C from which to build the pipeline.

From previous information, the only equipment at C will be some monitoring and safety equipment. All the major upgrades will be on A. A and C are only a mile away. So the pipeline will be easy along a road they are constructing.

Updated Cavendish note on TXP :

Good post by AE. AE regularly has discussions with TXP.


ActiveEurope New: Yesterday, 5:05 AM
Analyst


Cascadura

Year end 2022 2P reserves were 75.1 MMboe and an NPV10 of U$993.7m pretax or U$450.6m post tax. It’s our understanding about 70% of that was attributable to Cascadura (52.1 MMboe) based on the area up to a fault line close to pad C. The two upcoming wells have the potential to move reserve numbers up substantially. Roughly speaking the first well (drilling from Cas C pad back towards current production 2 wells), if successful, would move 3P reserves to 2P reserves of about 35m MMboe (out of the 3P number 120.6 MMboe reported in reserve number), that’s a very significant value uplift. The next well after has the potential to bring new 2P reserves (not in 3P at all) focused on the area outside the fault line but up to the licence boundary (it drills from C pad towards licence boundary), and again if successful it could add 30-35 MMboe to 2P reserves. Lastly, if they receive final government sign off on the Rio Clara block they could drill a well from Cas C pad towards and across the current licence boundary and again if successful this could add a further circa 35m Mboe to 2P, all are approximate type numbers. Hence all 3 upcoming wells have the potential to add very significant 2P reserves and valuations, back of the envelope if all 3 were successful this could add circa 90 MMboe (80% share so net 72 MMboe) more to the existing Cas 2P of 52 MMboe (their 80% net share already). The share price/valuation is currently ‘disappointed’ with Royston result, delays across the board and little upcoming exploration drilling newsflow but is completely missing how material the Cascadura drilling could be.
All 2 or potentially 3 Cascadura wells are also primed for quick production (6months tie in Cas-C to Cas-A and separators etc) into existing facilities spare capacity, the current 2 producing wells are combined at 60mmcfd gross and may potentially increase to 90mmcfd gross in the future assuming there are no geological issues. The next wells are budgeted at 20 mmcfd gross each but are actually drilling into what management interpret as a slightly more gassy (less liquids) up-dip and potentially better area of relevant reservoirs for gas. They are budgeting minimal liquids although likely there will be some. Current 60mmcf and associated liquids provides U$4m a month, a move to 90 subject to successful geology at existing 2 wells moves this to U$6m a month and if all 3 new wells are on budget that’s 60mmcf/d and another U$4m a month: in total that’s U$10m a month possible at some point in late 2024/early 2025. Annualised that’s U$120m cashflow from Cascadura possible after the next 3 wells if drilled successfully. Obviously there can be delays and poor drilling results but this should be a relatively low risk development work and there are reasons it could surprise to the upside too. Its also worth noting the next well will be deepened to a new sheet as an exploration addition, we’d value this at zero but it’s worth mentioning.

Tax and Investment

Petroleum Operators ‘…entitled to capital allowances as follows….tangible and intangible exploration and development expenditure is computed on a straight line basis over 5 years (20% per annum)’ This means that if Touchstone spends U$100 on drilling and other related costs in one year, each subsequent year U$20 can be offset against taxable income so that over 5 years all the capex is effectively offset with taxable income. This is designed to encourage energy companies to keep investing in their business. Another way of looking at this is that if Touchstone invests U$100 in drilling its actually worth U$155 (100*55% (PPT+UEI rate)) over the 5 years to them. This is important to think about in the above Cascadura NPV reserve valuations pretax and post tax. The reality is the real value over time is somewhere in between these two NPV’s as there are some tax offsets from the full tax level modelled in the after tax valuation. Management are often questioned by investors ‘when are you going to pay a dividend or even do a share buyback?’. It’s worth pointing out both of these activities are ‘relatively expensive’ things to do when set against the tax incentives to keep reinvesting in the business. If touchstone reinvests nearly all its cashflow in growing the production of the company over several years it all gets ‘paid back’ in a lower tax rate. It’s for this reason investors and management ought to be reinvesting in growth rather than focusing on cash payback to investors. The reality is Touchstone are now self financing and have a plethora of new investment opportunities over the coming years, investors should be asking management to embrace growth capex for most of its cashflow. It’s the payback period on capex that’s actually the most important variable, ie how fast would capex on Cascadura payback. For instance 3 wells 80% share capex is 3*U$5.6m plus 80% of 5m for separators and pipes etc totals circa U$20.8m, if this adds 20mmcf/d each well totalling 60mmcf/d and U$ 4m a month then it takes somewhere around 5-6months to payback which is excellent use of cashflow (even less if including tax credit value).

Exploration

Cascadura has clearly been a huge success and as discussed above most likely still has more to give. In the recent presentation management put slides on several other future prospects, many are near drill ready but also some fall within the hoped for new licenses and asset swap deals that could be approved anytime between tomorrow and 12 months time depending on the Trinidad authorities timelines. Recently BP/Shell offshore licence was government approved and Touchstone management are hoping onshore licenses are next in line but there can be little predicting when this might be as the authorities appear to want to tie up all the licenses together meaning only once the last agreement is set up can they all be announced together, not doing companies or licenses individually. Coho 2 should be drilled 1H 2024 with a cheaper second rig and following that Coho 3 which includes the Gibba gas prospect at P50 circa 40-45BCF, these wells should fill the Shell spare capacity of 20mmcf/d. To the West of Cascadura they have named Char, Pike, Sturgeon and Muskallunga which all could be reached from one central pad (not yet permitted) and have promising on trend seismic with Cascadura. Equally Steelhead already has a drilling license already. Kokanee is up-dip from Chinook and needs a permit but is from an old drill pad so an easier permit exercise.

Valuation

I have always felt that Cascadura easily covers the valuation of the whole company up to somewhere around 120-150p per share (233.46m shares*120p or 150p=£280m to £350m). This does though include an implicit view that the next 2 wells will both be successful in proving up a much larger reserve base, the third not counted until licence agreement and drilling. The NPV10 post tax current value of U$450.6m could be at least twice that if all 3 wells come on prognosis. Most share prices trade at a wide discount to 2P valuations currently but you can easily argue for 120-150p. Alternatively you might pay 2-4*cashflow (single asset in high tax jurisdiction): here you have U$48m PA as current Cascadura (60mmcfd plus liquids) run rate and possibly U$120m annual run rate if ramped up by 3Q 2024 to 150mmcf/d. This gives valuations of U$96m to U$192m at low end production to U$ 240m to U$480m at the high end in about 12months time. Maybe Coho is U$20m, legacy assets U$20m but also current net debt offsets a lot of this. Lastly if the 200mmcf facility is filled up its 160mmcf/d net to them so about U$130m. The answer is valuation ranges can be very widely drawn, typically resource based valuations tend to be higher than just using trading multiples currently as the whole sector trading multiples are quite depressed currently. Further upside can clearly come from the continuous drilling campaign and we would hope that exploration wells from 3Q2024 and beyond might be possible.

Latest Shore Cap Note on TXP

Interview on LSE :


Touchstone Exploration put foot on the gas in Trinidad as they target 30,000 BOE and the FTSE 250



.

After being hounded and bashed and told repeatedly to under promise and over deliver.....the TXP team are being very conservative - and now they are being berated for "why are you not doing this and that"....why is it only this much going forward.........how come next Casca wells are only 20 each.....why why why....

Cant win can they.......but be assured, they are now being super conservative and understating the potential flows and rates and forecasts.

TXP and Heritage are trying to increase the price currently, they want around 3$ instead of the current 2.5$. This is most likely why they are not forecasting until mid December as they want to know IF they can assume 3$ in 2024 or stick with the 2.5$

As TXP goes forward you can now expect lots of conservative under promise flow targets and then all being well lots of over delivery.

Thats the new normal now, people wanted it, screamed for it and now your getting it.


This is the PB interview with Malcy, link below :



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Yesterdays TXP presentation video is on the link below :



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Update from Malcy, he was in on the earlier presentation today and says its excellent :

( Retail presentation later today 15:30 UK summer time - https://www.investormeetcompany.com/touchstone-exploration-inc/register-investor )


https://www.malcysblog.com/2023/09/oil-price-wentworth-dec-touchstone/

.......Investors should make every effort to listen to the 3.30 presentation today as the situation at Touchstone has been totally transformed by the bringing on of Cascadura field that changes the company completely. I was on the earlier call and it was excellent. I interview CEO Paul Baay tomorrow.......

Back in the land of internet today, so I can partake of the TXP meeting in the middle of the night.

For anyone not aware, its live on https://www.investormeetcompany.com

15:30 UK summer time today - Free to register and attend,.


The new presentation is good, pretty much as expected.........nice to see the 1000 foot updip location at Chinook is now a new drill prospect - which is as we all said at the time.......and we are looking for near 900 feet of oil column there, maybe over 500 feet of net pay....thats a big drill.

New presentation link is :

https://www.touchstoneexploration.com/wp-content/uploads/2023/09/TXP-Corporate-Presentation-Sept-2023.pdf

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Got asked by PM why the existing Casca wells will be bought on slowly, as it seems the Discord group have no clue and going down rabbit holes.

Cascadura ST1 the well bore was damaged by the drilling mud, same in Deep-1. Both well bores need time on production to hopefully clean up.

ST-1 and Deep-1 both have 55 million per day seperators on them.

Both wells will be bought on slowely due to them wanting to clean the well bores up.

ST-1 is capable - they believe of up 55 million per day when fully cleaned up.

Deep-1 is capable - they believe of up 55 million per day when fully cleaned up.

This is why only 2 weels at C - Cascadura C1 and C2 are planned - as they hope these 4 wells when at full flow can max out the 200 million per day capacity (absolute best case is 55+55+55+55 = 220 million per day A+C.....but dont bet anything on it)


HOWEVER.......they will not go full open flow to start with and will gradually be ramped up.

Its very likely that after an initial low flowing rate, they will be ramped up in steps to 45 million per day........so 90 million is the Casc-A target and then another 90 million the Casc-C target - with upside to go 100 million each site.

The initial "online" RNS will likely be low flow, maybe 20 to 25 million per day, and then its get ramped up from there over time as they monitor pressure/flow and how the well bores are cleaning up.

Cascadura-A first gas is now in the system and the system is in the process of final commissioining and being ramped up to initial "production" volumes.

The wells will be gradually ramped up over time to their expected 60 per day (30 each).

I do not know what TXP will class as "initial production" it might be 20 or 30 per day (10 to 15 from each).......but when they reach this initial low target they will RNS about "initial production volumes online" it seems. No news before then.

Do not expect any news until they reach their initial low target. Then over time operational updates will state how much they have then reached. The well bores need to clean up slowely at first to get the best production rates and so the taps will slowely be opened up over months...not weeks.

EG initial news Cascadura online at say 20 per day for initial production.
Later a month/months - Cascaura is now at 40 per day
Later - Cascadura is now at 60 per day.

There is hope that clean up will allow each well to do 50 per day, which is the "best case situation" and 4 wells - 2 existing at Casca A and then 2 new at Casca-C can give 200 per day by Q3 2024.

So might be news this week or next, the key takeaway would be inspections are over, sign off is done and now its all systms go, albeit slow slow at first.

This should mean we can get the first of 2 new wells, Cascadura-C1, spudded in late September hopefully and not slip into October.

So keep those FATC !!

0.92 GBP currently, which is 1.58 CAD equivalent........lets see what Canada opens at for TXP in 20 minutes time.

So ahead we have something like this :

Cascadura-A online at initial low rate RNS soon in August

Then Cascadura-A ramps up as the wellbore cleans up might be further news in August or September

Spud of Cascadura-C1 well - exploration and development in September.

Asset swap deal news.

Charuma license application news.

Royston 1X flow test results in September or October

Cascadura C1 TD reached and logging results in October

Spud of Cascadura C2 well in November

Cascadura C2 well results in December.

Flow testing of Cascadura C2 in January.

Potential spud of Royston-2 in January.

Flow testing of Cascadura C2 in February.

Rosyton-2 drilling results in February.

Royston-3 spud in March / Coho-2 spud in March - one of them ?

June 2024 Cascadura C pad online with A - possible 200 per day production plus liquids.

Second drilling rig put on hire after Casca-C is online. Then one rig doing development and one rig doing exploration for the next 10 years non-stop drilling.

Golden Cross on the Touchstone chart TXP/PBEGF

https://www.malcysblog.com/2023/07/oil-price-touchstone-iog-beacon-jadestone-and-finally/

.....Touchstone is now within pitching distance of full-on production so the company are taking no risks by missing any final tests at the facility as they approach the final MEEI inspection and ahead of gassing up the system.

Over at Royston, as noted above, the testing continues in this important well targeting the intermediate sheet of the Herrera formation, the primary target of the well.

I remain a huge fan of TXP and when the gas finally flows there will be an incredible increase in value which is by no means in the share price at the moment.....

https://www.proactiveinvestors.co.uk/companies/news/1022126/touchstone-exploration-nearing-final-countdown-to-first-cascadura-production-1022126.html

Touchstone Exploration nearing final countdown to first Cascadura production

Published: 08:12 31 Jul 2023


Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) is on the verge of a major uptick in production as it ente.............

The #Cascadura facility is now mechanically complete and is currently being pressure tested with inert nitrogen gas. For full details visit https://t.co/H2voVM7rT3#OilandGas #Trinidad #EnergyInsdustry pic.twitter.com/MJ6fmSqghj— Touchstone Explor. (@TouchstoneExp) July 31, 2023

Touchstone Explor. @TouchstoneExp

The #Cascadura facility is now mechanically complete and is currently being pressure tested with inert nitrogen gas. For full details visit

http://touchstoneexploration.com
#OilandGas #Trinidad #EnergyInsdustry

Rumour has it the CEO has gone to T&T for the "Cascadura Online" ceremony, at which we can expect to see Stuart Young and lots of media coverage in the local T&T media outlets.
So if Paul arrived yesterday in T&T, should be spending today and perhaps tomorrow making sure all is arranged and ok for the "Ribbon Cutting and Turning on" ceremony either tomorrow or Thursday.
So I would guess an RNS (News Release) is going to appear tomorrow morning or Thursday morning stating that the Cascadura facility is going online.
Lets see.

7th July Presentation video



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https://www.malcysblog.com/2023/07/oil-price-touchstone-petrotal-angus-hunting-petro-matad-prospex-and-finally/

Touchstone Exploration

It is going to be a crucial week in Touchstone’s history and last night CEO Paul Baay was appearing in the Shares Investor Webinar to point out just how important will be. The strong production imminently starting from Cascadura will give the company ‘5 year visibility’ and more and make it a full cycle E&P company.

With it the company can start to convert reserves into production using the significant technology advances available, the support from the Energy Minister will see production get into top gear very soon and be producing over 9,000 boe/d and making it more of a natural gas company.

So, over the next few days TXP shareholders can expect the plugs to be removed from the two wells at Cascadura and the flow to the newly built gas facilities will begin. And this is only the beginning, CEO Paul Baay was at pains to point out that there are a number of further wells to be drilled, probably at least five with the rig off to drill the next one very soon.

There is much more elsewhere at Coho and Royston but this is the time for Cascadura to shine, the Ortoire block that I was shown a while ago on charts is really coming into its own, the Herrera fairway is indeed that, and over the next few years there are plenty of opportunities to fill up the spare capacity at the gas facility.

There will be plenty of news from TXP in coming days, this will prove that it is going to be a very substantial company with huge reserves and decent production but more importantly masses and masses of upside, yes it could be a stock for 2023.

https://www.share-talk.com/malcys-blog-oil-price-touchstone-exploration-sound-energy-serica-energy-i3-energy-jadestone-energy/


........These are exciting times for Touchstone as the massive development that is Cascadura is now just around the corner, less than a fortnight until first gas from what will be a total game-changer for the company and its shareholders.

The company is in the Bucket List for a good reason and I still believe that the huge upside potential from Cascadura is no way represented by the current share price, my 200p TP still stands..........

June 2023 presentation link below.

They look more and more confident on Krakken.........

https://www.touchstoneexploration.com/wp-content/uploads/2023/06/Corporate-Presentation-June-2023.pdf

Mid term plan is clear.

Cascadura 2 development drill (H2 23)

Cascadura 3 development drill (H2 23)

Royston Development and Exploration drills. (H2 23/H1 24

Krakken and Steelhead and Gaubine Exploration wells. (2024)

That will be H2 23 and most of 2024 activity of the drilling rig.

The excitement is all about to kick off again........

Looks like good news coming next week.............

https://seekingalpha.com/instablog/41272106-activeeurope/5674359-touchstone-amazing-upside-still-to-come#comment-95067304

"I had a recent catch up with management and a few interesting points.
Cascadura start up remains clearly on schedule for end of June2023, NGC are now further incentivised after BP suffered a recent gas production loss of one well offshore, hence the immediate need for gas on the island is acute. NGC are working extra shifts if needed and flying in parts if needed. For TXP part they remain well on schedule and have good visibility on meeting the targets currently. Management are acutely aware of last 2 years missing timelines and I gave them every opportunity to be cautious on delivery but contrary to this they remain resolutely confident in current timelines. First gas transforms the business from a cashflow point of view and moves future drilling to self funded, it should be a material risk reduction point for the shares in lowering cost of capital/rising share price. A move for management becoming in charge of their own drilling destiny has the potential to transform the investment case over the next 18months.
Royston sidetrack well testing. It should be emphasised the first test was a ‘long shot’ but management wanted to see if there was oil present, porosity was only around 6 and no-one internally/drill team/Schlumberger expected anything much. However the next test remains in the sub thrust and has more like 12ish on porosity with a plan to perforate 2 intervals of 30ft each within what they think is much better prospectivity. Any success here in the sub thrust would add reserves and provide a good target for future drilling. The ‘main event’ is clearly the test afterwards which is the intermediate test, previously 38ft was perforated and flowed 500+BOPD. Here there is circa 20ft above and 30ft below last time test for better sand thickness and another section of 100ft below that also can be perforated. Hence we have a lot more sand thickness this time around. The hope would be that both the subthrust and intermediate tests produce some oil flow and maybe intermediate test beats management guidance of circa 500BoPD. If both tests flow the plan/hope would be to put them both on long term test comingled in a combined rate. They would then not plan to test any of the higher zones after the intermediate in this well. However if no flow rates are established higher test zones are in reserve for testing but this would be a plan B type scenario. Key point here really is that there is still everything to play for with upcoming two Royston tests. Depending on pressure they could also opt to put in a pump to help lift the oil given the weight of liquids within the pipe (10,000ft 7inch and 9 3/8inch higher up) above perforation points.


Timing/delay. Once the drilling of Royston sidetrack was complete they negotiated a decent day rate for the star valley rig for a few days to perforate the deepest section to start testing. The crew were then sent home/off island etc as no longer needed and expensive. Actual testing took longer than expected and 2 lots of swabbing plus waiting for the 10,000ft column to refill with liquid and hence the long delay, I’m still a little unsure why it took so long. From the finish of first test it’s not worth the expense of reassembling the star valley crew to use the rig again for higher up perforation and testing. Instead management chose the much cheaper option of once the rig is moved they can use a service rig but this means a delay until new Cascadura pad is finished and the star valley rig can be moved, hence the frustrating elongation of testing timelines.
The star valley rig contract runs from September to September and has a minimum number of days usage per year (also explains why willing to use it for first part of testing), hence they would like to get it drilling ASAP at Cascadura new pad site but equally they would like the certainty of cashflow from Cascadura start up, hence there is a sensible juggling act going on here to maintain a sensible prudent cash buffer within the business. There is absolutely no need for more equity. If all goes well the rig would certainly drill 2 and probably 3 wells in succession at Cascadura and long lead items for production potentially ordered after the first well drilled, taking up to 6months to arrive etc. This would hope for significantly increased Cascadura production during 2024, possibly late summer. Note the 2-3 wells would most likely add to reserves and also move reserves up from 3P to 2P and 1P in a value enhancing manner.

They await license awards. A second well at COHO looks an attractive plan but nothing scheduled in."

Paul Baay gives an update on the Cascadura site progress.

https://www.facebook.com/TouchstoneExploration/videos/172147585709490/

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https://trinidadexpress.com/business/local/crude-oil-could-soon-flow-from-touchstone-s-royston-discovery/article_076699c4-bd55-11ed-98f6-a7909c6d6dd3.html

Crude oil could soon flow from Touchstone’s Royston discovery

By the middle of April, the country should have a better idea whether Touchstone’s Royston oil discovery is as substantial as the company thinks it is and if it would see an immediate addition to the country’s oil production.

President and chief executive officer of the Canadian outfit, Paul Baay told Express Business the Touchstone 1-X well, which was recently completed, encountered a total section of about 1,700 feet, one of the thickest sections Touchstone has seen in its on-land drilling campaign, and 740 feet of sand that it thinks is prospective.
Paul Baay

The company, however, will not know if it is hydrocarbon-bearing sands until it is able to perforate and complete the well.

In an interview with Express Business Baay said, “It will be about a month before we can move the rig over to Cascadura because we are still building the drilling site, so Royston probably won’t be tested until sometime in April, probably early April, or mid-April and then if it is light oil as we think it is, then it will virtually come on production right away.”

The company recently announced that Royston-1X was drilled to a total depth of 11,316 ft and encountered substantial sands in the targeted Herrera Formation.

It noted that drilling operations took approximately 25 days, which was ahead of schedule and on budget.

Baay added that this is the deepest well Touchstone has drilled to date and also is the deepest well drilled onshore Trinidad in the last 15 years.

“The fact that the well was drilled ahead of schedule and within our budget can be attributed to the best-in-class industry standards that Touchstone is driving within Trinidad, both through the introduction of new equipment, as well as additional expertise that we have added to our technical team,” Baay boasted.

He added, “We are encouraged by the hydrocarbon indications internally interpreted from open-hole wireline logs, which show that the well successfully intersected the Herrera Formation through the sub-thrust level in one of the thickest turbidite sections observed in any of our previous wells. Once the drilling pad is completed at our Cascadura C location, the drilling rig will be moved off the Royston location, and we will commence a comprehensive testing programme that is currently anticipated to begin in April. We will update the market when results become available.”

Touchstone’s president told Express Business that the estimate of being able to produce between 6,000 and 10,000 barrels of oil per day (bo/d) was still on.

He said, “I think those are still good numbers for the field, if these completions turn out the way we want, that’s certainly our target.”

According to Baay, the plan is to put Royston on production while Touchstone drills its next two wells at its Cascadura gas field and then head back to Royston.

“We already have the approval to drill two more wells off of that same pad, so if it works we will come right back over in late 2023 and start the development at Royston, “ Baay revealed.

He estimates that the first well will produce in the vicinity of 500 bo/d and said to get to the 6,000 bo/d to 10,000 bo/d it would mean drilling up to 21 wells in the field and having them simultaneously on production.

“Our pre-drill estimate of what we were looking for here was approximately 500 barrels a day. And we would like to see that from each well, it sort of gives you an idea of what we are looking at, something which at the end of the day is something between 12 and 20 wells in the pool,” Baay noted.

He said the hope is to have all of the wells drilled and on production by 2024.

If successful this will be good news for Trinidad and Tobago which has only been able to hold production at close to 60,000 bo/d and not increase production, even at times of high prices.

On the issue of the Cascadura gas development, Baay said the company will be ready to send the first gas whenever the National Gas Company (NGC) is able to receive it.

“We got notified by the NGC that their pipelines are going to be ready by the end of June, and that’s a little later than we had hoped. We will probably be ready by the middle of May. We will have our part of the facility all done and ready by the middle of May so we will make sure we are ready and whenever the NGC is ready we can send them first gas.”

Touchstone recently told investors that the NGC will not be ready to receive gas from its Cascadura field until June 30, almost two months behind schedule.

Touchstone said, “On February 24, 2023, the Company was notified by The National Gas Company of Trinidad and Tobago Limited (NGC) that they expect to be ready to receive first gas from the Cascadura natural gas and associated liquids facility on or about June 30, 2023.”

Touchstone said it remains on track to complete the Cascadura facility prior to this date to ensure production can commence as soon as NGC is in a position to receive the first gas.

Baay told Express Business the plan is to start at 60 million standard cubic feet per day (mmscf/d) and then drill the two additional development wells that Touchstone intends to bring on at the end of 2023.

He said, “We will like to see that facility be about 100mmscf/d by December 31, 2023... The target would be somewhere between 150 mmscf/d and 200 mmscf/d I think, which is ultimately where we want to get to on that facility. We need to do some more drilling to get to that high end of the plan.”

That 150mmscf/d does not include its Coho development which is choked at eight mmscf/d.

He said, “It’s been running closer to about eight mmscf/d and that’s mainly due to the pressures going into the Shell facility. The well is still what we call choked back to meet the pressures into the Shell facility. It is capable of much more but that’s all we are able to run it at right now.”

https://www.facebook.com/TouchstoneExploration

Touchstone Exploration Inc. 16 h ·

The team is working hard over the weekend to transport equipment to the #Cascadura facility. The compressors and separators are currently en route with 30 employees and consultants helping to facilitate the move, ensuring that #health and #safety are at the forefront.

Rig is ready to be inspected, then gets drilling. Exciting times.

Proactive interview with the CEO.



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Placing done, cashed up.

I see a potential 200%+ in the coming 6 to 9 months. Coho already online, Cascadura online in Q1 and Royston sidetrack to do.

Video interview below link :

https://www.directorstalkinterviews.com/touchstone-exploration-to-accelerate-exploration,-development-and-production-opportunities-video/4121093842

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Shore Cap note on Touchstone

[url=https://postimg.cc/K1MzGSvN][/url]

Interview link with Paul Baay on Proactive is below :



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Xaviers presentation "Revisiting the Cretaceous of Trinidad" from April to the Houston Geological Society.

Most interesting.......insights into Krakken and Royston.



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Interview with PB.

Coho "weeks away"......

Cascadura still planned on line end of Sept.

https://www.directorstalkinterviews.com/touchstone-exploration-strong-cash-position-and-increased-production-volumes-video/4121064625

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Shore Cap note on TXP just out. PDF file in the link below.

https://gofile.io/d/CNz2RS

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